GBP/USD fell sharply in the second half of the previous week and touched its lowest level in a month at 1.2033. Economists at ING expect the pair to challenge the 1.20 level soon.
Growth data in focus this week.“We expect the British economy to have narrowly avoided a technical recession in the fourth quarter. Still, a 1Q23-2Q23 recession is more than possible, although that could be milder than previously expected thanks to lower energy prices.”
“Growth data and BoE speakers will be the two domestic inputs for the Pound this week, although global risk sentiment, geopolitical developments and a supported Dollar may work against any positive domestic news.”“Cable may heavily test 1.2000 soon.”
EUR/USD holds steady below 1.0800 ahead of EU data
EUR/USD is holding steady just shy of the 1.0800 mark in the early European morning. The US Dollar is consolidating the upside amid a cautious market tone, as investors assess Friday’s US NFP blowout and hawkish Fed expectations. Eurozone data coming up next.
GBP/USD attempts to cross 1.2050, downside looks likely amid US-China tensions
The GBP/USD pair has attempted to extend its rebound move above the critical resistance of 1.2050 in the Tokyo session. The Cable gauged an intermediate cushion around 1.2000 amid subdued performance by the US Dollar Index (DXY).
Gold bulls need validation from $1,905
Gold price rebounds from monthly low, grinding higher around intraday tops surrounding $1,878 heading into Monday’s European session. In doing so, the yellow metal snaps a two-day downtrend amid the sluggish US Dollar.
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