CrossBorderBoost News

GBP/USD has paused its two-day rally to 34-month highs above 1.3900, as the bulls gather more energy to start afresh northwards. The UK vaccine rollout continues to outperform its peers and along with some positive results in the domestic docket and the likeliness that the BoE will not implement negative rates in the short-term horizon sustained the firm demand for the quid and opened the door for a move to the key 1.40 level in GBP/USD in the not-so-distant future. EUR/USD clings to modest daily gains above 1.2130. The dollar index was down 0.2% at 90.335, not far removed from last week’s low of 90.249, a level not seen since Jan. 27. AUD/USD rose 0.3% to 0.7779, while the Chinese yuan reached its strongest level since June 2018 at 6.4009 per dollar in the offshore market. USD/JPY was up 0.2% at 105.12, with the safe haven yen also suffering despite Japan reporting its gross domestic product grew an annualized 12.7% from the prior quarter in the three months through December, ahead of the 10.1% expansion expected.

GBP/USD near multi-day lows, below 1.3800 mark. Break below the 23.6% Fibonacci. might have paved the way for further weakness. Mixed technical indicators warrant caution before placing fresh bearish bets.  Oscillators on the daily chart – though have been losing positive traction – are yet to confirm the bearish bias. Hence, any subsequent fall is likely to find decent support near the 1.3760-55 resistance breakpoint, which should act as a key pivotal point and help determine the GBP/USD pair's near-term trajectory. EUR/USD comes under some pressure near 1.2100. Immediately to the upside comes in a Fibonacci level at 1.2173.The dollar index was up 0.1% at 90.487, but still on track to fall 0.6% this week. USD/JPY was up 0.2% at 104.88, while AUD/USD rose 0.1% to 0.7746. The weekly initial jobless claims data came in weaker-than-expected on Thursday, adding to last week’s nonfarm payrolls number that suggested that the recovery in the jobs market in the U.S. would be a prolonged affair.

GBP/USD witnessed some profit-taking and edged lower during the early European session. The supportive fundamental backdrop should help limit any meaningful slide for the major. Weakness below the 1.3800 mark might still be seen as an opportunity for bullish traders. GBP/USD maintains its break to a new high for the year to reassert the core uptrend and reinforce the existing long-term base above 1.3514. Economists at Credit Suisse see resistance next at 1.3890/95, ahead of 1.3997/1.4000 and eventually the key 2018 highs and 50% retracement of the 2014/2020 bear trend at 1.4302/77. EUR/USD extends the recent consolidation above 1.2100. The dollar remains weak and supports gains in the pair. US Initial Claims, Fed’s Monetary Policy Report next in the docket. The dollar index was up less than 0.1% at 90.406, after earlier falling as low as 90.249, a two-week low, on Wednesday. USD/JPY was up 0.1% at 104.66, while AUD/USD rose 0.3% to 0.7741.

The GBP/USD pair has moved north of 1.3800. The breach of the 1.3800 resistance implies that the GBPU/SD may extend its run all the way to 1.4000, although the immediate next target is at 1.3880. Strong vaccination drive, and being past the peak of the most recent pandemic surge will be supportive of the cable pair. The risk sentiment remains buoyed by the US stimulus hopes, upbeat earnings reports and ample liquidity in the markets, which is expected to ramp up the global economic recovery from the coronavirus pandemic induced downturn. The further upside in the cable also remains at the mercy of the US CPI report, the BOE Governor Andrew Bailey’s speech and the appearance by the Fed Chief Jerome Powell, all of which are lined up later in the NA session. The EUR/USD pair has moved back above 1.21. The broad USD is now likely to be under further pressure amid risk-on. Market may now shift to focus on EUR-positives like the narrowing BTP-Bund spread, and target 1.2150 for the EUR/USD. The dollar index was down 0.1% at 90.343, after earlier falling as low as 90.332 for the first time this month. USD/JPY traded down 0.1% at 104.52, while the risk-sensitive AUD/USD rose 0.1% to 0.7749.

The GBP/USD pair has been hitting new multi-year highs, driven by dollar weakness. The cable could surge above 1.38 as the UK continue pushing immunization with full force. The pound is well-positioned to take advantage of the dollar's descent, thanks to Britain's vaccination drive. The UK has already jabbed around 18% of its population and is on course to hit the government's goal of reaching around 15 million people by February 15. Immediate resistance is at 1.3798, the new 2021 peak. It is followed by 1.3830, 1.39 and 140 – all dating back to 2018. Support is at 1.3760, a previous 2021 peak, followed by 1.3680 and 1.3565, which both served as cushions in recent days. The euro has benefitted from the broad-based US dollar sell-off which has helped to lift EUR/USD back towards the 1.2100-level after hitting an intra-day low at the end of last week of 1.1952. It provides some relief for the euro after a bad start to the year, economists at MUFG Bank report. The dollar index was down 0.3% at 90.638, continuing the weakness seen after Friday’s disappointing U.S. jobs data brought an end to a two-week run that had lifted it to a more than two-month high of 91.6. USD/JPY traded down 0.4% at 104.77.

GBP/USD has been retreating amid hopes for a large US stimulus package but Britain's virus advantage may send sterling higher. While the case for robust stimulus remains dollar positive, it is unlikely to pass immediately, allowing for the dollar to take a breather. The UK's vaccination drive is gaining pace, with over 17% of the population already having received one short, nearly double America's 9.1%. Some resistance awaits at the daily high of 1.3740, closely followed by the 2021 peak of 1.3752. Further above, 1.3810 and 1.40 are eyed. Support is seen at 1.3680, where the 50 SMA hits the price. The next cushion is 1.3615, which was a low point last week. The next level to watch is 1.3565, the February trough. EUR/USD seems to have met decent contention in the YTD lows around 1.1950 so far. In spite of the recent correction lower, the outlook for the pair remains constructive in the longer run and is always supported by prospects of a strong recovery in the region (and abroad), which is in turn underpinned by extra fiscal stimulus by the Fed and the ECB along with hopes of an acceleration in the vaccine rollout. The dollar index was up 0.1% at 91.075, after falling 0.6% on Friday. USD/JPY up 0.1% at 105.50, while AUD/USD fell 0.1% to 0.7676.

The GBP/USD pair, which was last seen trading around the 1.3700 mark amid a modest USD pullback, whose upside is likely to remain capped as investors are likely to refrain from placing any aggressive bets heading into the key data risk, due later during the early North American session on Friday. The downtrend in EUR/USD appears to have met some decent contention in the 1.1950 region so far this week. EUR/USD seems to have met decent contention in the 1.1950 region so far this week, or new 2021 lows. Solid results from US fundamentals plus the successful vaccine rollout in the US (when compared with Europe) and higher US yields have been sustaining the moderate upside bias in the dollar, lifting DXY to new yearly highs well above 91.00 the figure. USD/JPY fell 0.1% at 105.51, while AUD/USD rose 0.1% at 0.7601.

GBP/USD pair dropped to two-and-half-week lows, further below the 1.3600 mark and was pressured by sustained US dollar buying interest. A surprise rate cut – though seems unlikely – or hints of lowering rates in future could exert some heavy downward pressure on the sterling. Conversely, an upbeat economic assessment – amid the speedy rollout of COVID-19 vaccine in the UK – could provide a modest lift to the pound. The EUR/USD pair extended its daily slide despite the upbeat data and was last seen losing 0.42% on a daily basis at 1.1984. ECB provided updates on economic and monetary developments - “The unemployment rate in the euro area declined further in November 2020, helped by an increase in the number of workers covered by job retention schemes.” “Short-term labor market indicators have continued to improve somewhat, but are still signaling contractionary developments.“ The dollar index was up 0.2% at 91.320, near its highest level since early December. USD/JPY rose 0.2% at 105.22 while AUD/USD rose 0.2% at 0.7629.

GBP/USD bulls have managed to defend the critical 21-daily moving average (DMA), now at 1.3648, so far this Wednesday. The price breached the latter on Tuesday but recaptured it towards the closing. GBP buyers remain hopeful so long as the price holds above the 21-DMA. The major could likely retest Tuesday’s high at 1.3710. GBP/EUR was still showing strength halfway through the session opening, despite the latest Q4 GDP figures from the Eurozone highlighting improvement. The pair is up 0.33% on Tuesday at 1.1364 and data this week could see the pound at 1.1400 if it can stay in a bullish posture. EUR/USD has been failing to recover as Europe's vaccination campaign lags. The euro is set to extend falls after the breakdown after breaking below the triple-bottom of 1.2050. Investors are upgrading their outlooks in response to prospects of additional spending, buying stocks and selling stocks – and the resulting increase in Treasury yields makes the dollar more attractive. The relative growth dynamics between Europe, which is weak, and the U.S., which is better, are favouring the USD at the moment, but it remains to be seen if this can be a longer-lasting theme. Analysts are predicting EUR/USD to go below 1.20. The dollar index inched up 0.02% to 91.043 and rose to a two-month high during the previous session. The USD/JPY pair inched up 0.04% to 105.02, after the USD rose to 105.17 overnight for the first time since Nov. 12. The AUD/USD pair edged up 0.11% to 0.7614 and the NZD/USD pair was up 0.38% to 0.7218. The USD/CNY pair inched up 0.07% to 6.4594, after disappointing data was released in China earlier in the day.

GBP/USD eases from intraday top while also snapping two-day downtrend. South African virus strain cases without travel history triggered mass testing blitz in Britain, EU tightens rules for foreign visitors. UK PM Johnson stays hopeful for school open, Chancellor Sunak steps back from tax hikes. US President Joe Biden discusses stimulus, market frenzy eases. Renewed USD selling bias assisted GBP/USD to regain positive traction on Tuesday. The prevalent upbeat market mood was seen weighing on the safe-haven greenback. The upside seems limited as the focus remains on the BoE policy meeting on Thursday. EUR/USD has been failing to take advantage of the upbeat market mood and advance. The critical 1.2050 triple-bottom looks vulnerable after the dead-cat bounce as concerns about eurozone growth, vaccine supplies or US stimulus may spark a sell-off. Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.1% at 90.965, after pushing as high as 91.063 overnight for the first time since Dec. 10. USD/JPY rose 0.1% at 105.00 while the risk-sensitive AUD/USD fell 0.1% at 0.7611.