GBP/USD climbs above the 1.1000 figure on soft US dollar.

GBP/USD reached a daily high at 1.1074 due to the London Fix.US Initial Jobless Claims fell, cementing the case for further Fed rate hikes. GBP/USD Technical Analysis: Testing the 50% Fibonacci, once cleared, could rally towards 1.1210; otherwise, it could retest 1.0538.The GBP/USD advances for the third consecutive day as the global equities sell-off continues.Continue reading “GBP/USD climbs above the 1.1000 figure on soft US dollar.”

EUR/USD: Year-end forecast stands at 1.00.

EUR/USD has moved below parity. While economists at ABN Amro expect the euro to remain under pressure, they expect the pair to end the year around parity. Lower safe-haven demand could result in a recovery of EUR/USD.“An energy crisis and a recession in the eurozone combined with a more aggressive path of rate hikes inContinue reading “EUR/USD: Year-end forecast stands at 1.00.”

GBP/USD may face further downside risks .

The GBP’s recent decline has been dramatic. Wider deficits and bigger debt burdens need to be financed by foreign inflows – which may require further FX adjustment, according to economists at HSBC. UK’s structural concerns dominate.“The UK’s public finance position (in terms of relative debt dynamics) is going to worsen materially in the year ahead.Continue reading “GBP/USD may face further downside risks .”

EUR/USD: At risk of falling below the 0.95 level.

Economists at Rabobank see scope for further USD gains vs. the EUR and note that the EUR/USD pair could slide below the 0.95 level.Concerns over growth to underpin the greenback.“Since the USD is a safe haven, concerns that the US could tip into recession next year are set to be USD supportive.” “The USD isContinue reading “EUR/USD: At risk of falling below the 0.95 level.”