GBP/USD: Short covering and seasonal factors could keep Cable in the ascendancy this week.

Sterling carried over positive momentum from Q1 to April, resulting in GBP/USD crossing 1.25 for the first time since last June. Economists at Société Générale expect the pair to extend its race higher.

Further uptrend likely

“Hedge funds trimmed short GBP positions to 6.5% of OI last week, the lowest since the end of December. Short covering and seasonal factors could keep Cable in the ascendancy this week provided US CPI does not surprise to the upside.”

“Next potential hurdles are at projections of 1.2610 and 1.2750.”“Defending last week’s low at 1.2270 is crucial for persistence in up move.”

EUR/USD clings to gains above 1.0900 ahead of Fedspeak

EUR/USD continues to trade in positive territory slightly above 1.0900 on Tuesday following the mixed macroeconomic data releases from the Eurozone. As investors await comments from Fed officials, the US Dollar stays on the back foot, supporting the pair.

EUR/USD News

highs, holds above 1.2400

GBP/USD has lost its traction after having climbed to 1.2450 and erased a portion of its daily gains. The pair, however, manages to stay in positive territory above 1.2400 as the US Dollar struggles to gather recovery momentum ahead of Fedspeak.

GBP/USD News

Gold consolidates daily gains near $2,000

Gold price has lost its bullish momentum and declined toward $2,000 heading into the American session. Following the earlier decline, the 10-year US Treasury bond yield recovered above 3.4%, making it difficult for XAU/USD to continue to stretch higher.