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GBP/USD struggled for a firm direction and remained confined in a range on Monday. Failures near 1.4000 favour bearish traders; the emergence of dip-buying warrants caution. Neutral oscillators further make it prudent to wait for a sustained move in either direction. The GBP/USD pair sunk to take another look at the 1.3850 uptrend after weak data on Friday. If the cable holds the uptrend, a retest of the last week high at 1.4018 seems likely – Commerzbank. EUR/USD remains on track to end the first day of the week lower. ECB ramped up weekly asset purchases to €19.303 billion. US Dollar Index continues to fluctuate in daily range below 92.00.

GBP/USD witnessed a turnaround from the 1.4000 mark amid resurgent USD demand. Rallying US bond yields underpinned the USD and exerted some pressure on the major. Mostly softer UK macro data weighed on the sterling and contributed to the selling bias. EUR/USD comes down and tests the 1.19 area on Friday. A drops and test of recent lows near 1.830 is not ruled out. The dollar rose on Friday, recovering its losses from the day before, as a spike in Treasury yields early in the European session triggered a risk-off move in global currency markets, with riskier currencies taking a hit. Market participants have grown wary in recent weeks that there could be a spike in inflation caused by massive fiscal stimulus and pent-up consumer demand when economies reopen from their coronavirus lockdowns. Although soft U.S. CPI data on Wednesday went some way to calm those fears, U.S. Treasuries sold off again on Friday, with the 10-year yield rising above 1.6%. The dollar was up 0.4% at 91.835. But it was still below the high of 92.506 it reached on Tuesday, which was its strongest since November 2020. The Australian dollar - which is seen as a liquid proxy for risk appetite - fell by 0.5% to 0.77457 versus the U.S. dollar. The New Zealand dollar was down around 0.6% against the U.S. dollar. The Norwegian crown lost out to both euro and dollar.

The GBP/USD pair looks to be stabilizing above its 55-day moving average at 1.3761 and weakness stays seen as corrective prior to the core bull trend resuming towards the recent reaction high at 1.4017, Credit Suisse appraises. EUR/USD is up for the third session in a row on Thursday and reclaims the 1.1970 region, or multi-day highs, on the back of the moderate leg lower in the greenback. The dollar index fell to its lowest in a week early in Thursday's European session and there was a mild "risk on" tone in currency markets, as attention turned to the European Central Bank's policy meeting. The dollar was down around 0.2% at 91.606 against a basket of currencies, having dropped from the three month high of 92.506 it reached on Tuesday.

The GBP/USD pair quickly recovered around 25 pips from daily lows and was last seen trading in the neutral territory, around the 1.3870-75 region during the early European session. The pair witnessed some selling during the early part of the trading action on Wednesday and retreated further from three-day tops, around the 1.3925 region touched in the previous session. The downtick was exclusively sponsored by the emergence of some fresh buying around the US dollar, though lacked any strong follow-through selling. Following the overnight pullback, the USD was back in demand and inched back closer to multi-month tops amid signs of stability in the US Treasury bond yields. EUR/USD extends losses towards 1.1850 heading into early European trading. Resurgent US dollar demand amid stabilizing Treasury yields and risk-off mood weigh on the spot. Focus shifts to the US CPI and stimulus vote. GBP/EUR is trading at 1.1660 after the Bank of England (BoE) Governor Andrew Bailey has talked of permanent changes to the economy.  The dollar was pushed higher by the stabilization of U.S. Treasury yields following their drop from one-year highs. The dollar index was up 0.2% at 92.155, after falling back Tuesday from a 3 1/2-month high of 92.506. USD/JPY was up 0.3% at 108.83, while the risk-sensitive AUD/USD fell 0.3% to 0.7690. USD/CNY inched up to 6.5073 after the release of the Chinese CPI figures.

GBP/USD - 1.3920 is a tough nut to crack for the bulls. GBP/USD briefly recaptures 1.3900 but the further upside appears limited. Powerful resistance awaits at 1.3920 while RSI stays bullish. The cable rebounds as the US dollar drops along with Treasury yields. Euro area GDP contracted by 4.9% in 2020. EUR/USD clings to strong daily gains above 1.1900. From a technical perspective, the GBP/USD pair's inability to capitalize on the move and failure near the 1.3900 mark favours bearish traders. Subsequent weakness below mid-1.3800s will add credence to the negative outlook and pave the way for an extension of the recent corrective slide. The dollar edged lower in early European trading Tuesday, but remained near multi-month highs on the back of rising Treasury yields and the expectation of a robust U.S. economic recovery. The dollar index was down 0.2% at 92.130, after earlier climbing to 92.528, its highest level since late November.

GBP/USD resists dollar strength but not for too long. The Bank of England (BOE) Governor Andrew Bailey is scheduled to speak at a webinar hosted by the Resolution Foundation at 1000 GMT on Monday, with the speech titled ‘The economic outlook.” GBPUSD holding below 1.3820 today is a medium-term sell signal targeting1.3780/70 then 1.3715/05. Gains are likely to be limited in what could be a developing bear trend. Minor resistance at 1.3890/1.3900. Unlikely but a break higher meets strong resistance at1.3950/60. EUR/USD accelerates the downside to the 1.1870 region. Next on the downside comes in the key 200-day SMA. The Sentix Index improved to 1.9 in March. The dollar gained in early European trading Monday, trading around three-month highs, after the passage of the massive Covid-19 relief bill through the Senate added to a strong U.S. labour market report in fostering expectations of a strong recovery this year. The dollar index was up 0.2% at 92.168, near its three-month high of 92.201 set on Friday. USD/JPY was up 0.3% at 108.45, just off a nine-month high, while the risk-sensitive AUD/USD fell 0.1% to 0.7682.

GBP/USD hangs near weekly lows, just above mid-1.3800s. GBP/USD witnessed some follow-through selling on Friday amid a broad-based USD strength. The downside seems limited as the focus shifts to the release of the US monthly jobs report. EUR/USD looks weaker and clinches 2021 lows near 1.1920. EUR/USD loses further ground and drop to the 1.1920 area. German Factory Orders expanded 1.4% MoM in January. US Nonfarm Payrolls will be the salient event later on Friday. EUR appreciation could trigger ECB verbal intervention, always amidst the current (and future) context of subdued inflation. Potential political effervescence around the EU Recovery Fund. Huge long positions in the speculative community. EUR/USD is retreating 0.36% at 1.1921 and faces the next support at 1.1887 (61.8% Fibo of the November-January rally) followed by 1.1808 (200-day SMA) and finally 1.1762 (78.6% Fibo of the November-January rally). On the flip side, a break above 1.2027 (100-day SMA) would target 1.2129 (50-say SMA) en route to 1.2243 (monthly high Feb.25). Dollar Index was up 0.1% at 91.760, a three-month high. USD/JPY was up 0.3% at 108.25, climbing to an eight-month high earlier in the session, while the risk-sensitive AUD/USD fell 0.2% to 0.7710.

GBP/USD trades with modest losses below mid-1.3900s. Sustained USD buying prompted some selling around GBP/USD on Thursday. The downside seems limited ahead of the Fed Chair Jerome Powell’s speech. The lack of any meaningful buying interest and repeated failed attempts to move back above the key 1.4000 psychological mark suggests that the positive news is fully priced in. Hence, any attempted move up runs the risk of fizzling out rather quickly.  EUR/USD is likely to remain contained within an effective 1.1950-1.2350 range. The dollar index was up 0.1% at 91.002, adding to Wednesday’s gain of around 0.3%. USD/JPY was up 0.1% at 107.13, after hitting a seven month high the previous session. However, commodity currencies were still well-bid: the risk-sensitive AUD/USD rose 0.5% to 0.7812, continuing to show strength after Wednesday’s strong GDP data. The kiwi and Canadian dollar also rose.

UK Finance Minister Rishi Sunak will be in the global stoplight as he will deliver his second annual budget for the British economy. While the Chancellor of the Exchequer has already signalled readiness to do “whatever it takes”, traders would seek clues as to how the present freebies will be curtailed in the future to determine immediate GBP/USD moves. GBP could edge below last week’s low at 1.3890. In view of the lacklustre momentum, any further decline is unlikely to threaten the major support at 1.3850. The rebound has scope to extend but any further advance is likely limited to a test of 1.3995. The next resistance at 1.4035 is unlikely to come into the picture. Support is at 1.3925 followed by 1.3890. EUR/USD has been recovering amid temporary market calm. But, expected strong US figures, stimulus progress and America's vaccine ramp-up are set to boost the greenback,  Economists expect the ISM Services Purchasing Managers' Index to print 58.7 points in February – prolonged growth in America's largest sector. The Manufacturing PMI smashed estimates earlier in the week with 60.8. ADP's employment figures are forecast to show an increase of 177,000 private-sector jobs. While the old continent is struggling to get people to take the AstraZeneca jab, the US is ramping up the rollout and also production. Merck agreed to produce Johnson and Johnson's single-shot inoculations and President Joe Biden stated that every American could be offered a vaccine by the end of May. Euro/dollar continues suffering from downside momentum on the 4-hour chart and trades below the 50, 100 and 200 Simple Moving Averages – which are all converging around the 1.2110 level. The dollar index slipped to 90.971 after dropping back from a nearly one-month high overnight.

GBP/USD remains depressed below 1.3900 mark, hangs near 1-1/2-week lows. The USD buying interest picked up pace during the early European session and dragged the GBP/USD pair to one-and-half-week lows, around the 1.3865 region in the last hour. A sustained break below the 1.3900 mark might have shifted the bias in favour of bearish traders. EUR/USD sheds ground for the third session in a row and breach the key psychological support at 1.20 the figure on turnaround Tuesday. As the reflation/vaccine trade appears to lose ground as a driver for further upside in the risk complex, strong prospects of US growth plus rising perception by investors of a pick-up in inflation in the medium term have lent extra oxygen to the buck and propelled DXY to new multi-week peaks beyond 91.00 the figure. USD/JPY was up 0.1% at 106.84. The risk-sensitive AUD/USD fell 0.3% to 0.7750, after the Reserve Bank of Australia re-committed to keeping interest rates at historic lows. NZD/USD dropped 0.5% to 0.7224, while USD/CAD rose 0.3% to 1.2684.