Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GBP
- Lower yields in the UK are moderately weighing on the pound Friday, which sits roughly 0.3% in the red against the euro and the Japanese yen. EURGBP has swung back to retest the July 1 high, which matches closely with the multi-year pivot level at 0.8500.
- This level remains a key hurdle for bulls and clearance would undermine the recent bearish theme and highlight a potential short-term reversal. Note that price is also above the 50-day EMA. Highs at 0.8525 and 0.8541 are the next points of interest on the topside, and should closely coincide with downtrend resistance, drawn from the 2022 highs.
- Further bullish technical developments might signal scope for a move back towards the double top at 0.8645.
- As a reminder, HSBC were timely in putting out a short recommendation on the pound Thursday, suggesting the BOE’s rate cut should not be taken lightly, in the context of how crowded long-GBP carry trades are. As a reminder, they look for a move lower in GBPAUD, with a price target of 1.9000.
- Cable trades broadly unchanged as we await the US employment report this afternoon. The clear break of the 50-day EMA and trendline support (drawn from the Apr 22 low), suggests scope for an extension towards the 1.2672, a Fibonacci projection, should the data beat expectations. Below here, 1.26, the Jun 27 low remains a key support.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok