GBP/USD closed in negative territory on Thursday but managed to hold above 1.2000. Support levels at 1.1850/1950 are set to hold in the next few weeks, economists at ING report.
A good week for UK data
“Following Tuesday’s strong PMI release, the UK outlook has received another boost today in the form of a big jump in GFK consumer confidence. This has now returned to levels not seen since last April.”
“Slightly better growth prospects, sticky inflation and some further monetary tightening are the story across the US, the Eurozone and the UK at the moment – suggesting bilateral FX rates do not need to move too much.
“Three-month GBP/USD implied volatility has drifted under 10% and would tend to favour more modest moves in the spot. We think support levels at 1.1850/1950 may hold over the next couple of weeks.”
EUR/USD holds steady around 1.0600 ahead of US PCE inflation
EUR/USD is paring back gains to trade modestly flat around 1.0600 in early Europe. The pair portrays the market’s anxiety ahead of the US PCE inflation data. The US Dollar consolidates recent gains amid brewing geopolitical tensions and hawkish Fed expectations.
EUR/USD News
GBP/USD defends 1.2000 amid cautious mood, US data in focus
GBP/USD is finding buyers above 1.2000 in the European session. A cautious market mood and a broadly steady US Dollar are lending support to the pair but geopolitical tensions surrounding Ukraine and Fed-BoE policy divergence cap the upside. US PCE inflation data is awaited.
GBP/USD News
Gold: US Dollar dominance keeps weighing on XAU/USD ahead of US PCE inflation
Gold price remains bearish despite improving market mood. PCE disinflation should continue, but any surprise could have a notable impact on Gold.
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