GBP/USD: Extra advance appears on the cards above 1.2550.

In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, the upside momentum in GBP/USD is expected to accelerate once 1.2550 is cleared.

Key Quotes

24-hour view: “We highlighted yesterday that despite the advance in GBP to 1.2516, there was no significant increase in momentum. We added, ‘instead of strengthening further, GBP is more likely to trade sideways in 1.2420/1.2520 range’. Our view was not wrong even though GBP traded in a narrower range than expected (1.2437/1.2500). The underlying tone has firmed somewhat, and today there is room for GBP to edge above 1.2520. However, a clear break of the major resistance at 1.2550 is unlikely. Support is at 1.2470, followed by 1.2435.”

Next 1-3 weeks: “We highlighted yesterday (27 Apr, spot at 1.2470) that in order for GBP to advance in a sustained manner, it has to break and stay above 1.2550. We continue to hold the same view. The likelihood of GBP breaking clearly above 1.2550 will remain intact as long as it does move below 1.2390 (‘strong support’ level was at 1.2370 yesterday). Looking ahead, the next resistance level above 1.2550 is at 1.2665.”

EUR/USD rebounds toward 1.1050 on hot French inflation data

EUR/USD is jumping back toward 1.1050 after the French inflation beat estimates with 6.9% YoY in April. The pair is resilient to a broad US Dollar rebound,  as investors await a slew of top-tier economic news from the euro area and the US. 


GBP/USD rises toward 1.2500, US PCE inflation data eyed

GBP/USD is looking to retest the 1.2500 level in the European session on Friday. The pair is rebounding, despite an extended recovery in the US Dollar, fuelled by the dovish BoJ-induced USD/JPY rally, The focus shifts toward US PCE inflation data. 


Gold downside hinges on $1960 break and Fed

Gold price (XAU/USD) remains pressured below $2,000, printing a three-day downtrend, even as the yellow metal buyers brace for the weekly gains due to its traditional safe-haven status. In doing so, the XAU/USD ignores the recent recovery of the US Dollar.

<a href=”;c=503446″><img src=”; width=”120″ height=”600″ /></a>