US Dollar falls while commodity currencies outperform.Equity prices rise in Wall Street, head for a slide in Europe.
GBP/USD with positive momentum, tests relevant resistance.The GBP/USD is up on Thursday for the second day in a row but the upside remains limited by the 1.2230 area. Risk appetite and a weaker dollar are supporting the pair.
In Wall Street, the Dow Jones is up by 0.72% while the Nasdaq gains by 1.10%. European indexes are in negative, with the FTSE 100 down by 0.07%. The US Dollar Index is falling by 0.25%. The best performers in FX are commodity currencies as Gold, Silver and oil rise sharply.
Economic data released on Thursday showed US Initial Jobless Claims rose as expected to 230K in the week ended December 3 while Continuing Claims increased by 62K in the week of November 26 to 1.671 million, above the 1.575 million of market consensus, hitting the highest level since early February.
On Friday, China will report the Consumer Price Index for November that is expected to show an increase of 1% (annual). The Bank of England will release the Consumer Inflation Expectations report. In the US are due the Producer Price Index and the University of Michigan Consumer Sentiment report.
GBP/USD short-term outlook
The GBP/USD pair is trading at daily highs, challenging the 1.2230 zone. If it consolidates above, the positive momentum will favor more gains, targeting 1.2260. Above, attention would turn to 1.2290/1.2300.
A failure to break 1.2230 would keep the pair sideways between that area and 1.2150. A slide below would expose the weekly low at 1.2104.
EUR/USD rises toward 1.0550 amid broad US Dollar weakness
EUR/USD has preserved its bullish momentum and climbed toward 1.0550 during the American trading hours on Thursday. The improving market mood, as reflected by strong gains in Wall Street’s main indexes, weighs on the US Dollar and helps the pair push higher.
GBP/USD clings to modest daily gains above 1.2200
GBP/USD has gained traction and climbed above 1.2200 in the second half of the day on Thursday. Although the pair retreated from the daily high it set near 1.2250, it manages to hold in positive territory with the US Dollar struggling to find demand in the risk-positive environment.
Gold: Aiming for $1,800 as US Dollar weakness continues
The US Dollar trades with a sour tone on Thursday, down against most major rivals. XAU/USD hovers around $1,790 a troy ounce, up for a third consecutive day but still in the red on a weekly basis. The better tone of US equities weighs on the American currency, despite the absence of a fresh catalyst.