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CHF LIBOR FIX - 18-05-2021

EUROZONE

EUR LIBOR FIX - 18-05-2021

JAPAN

JPY LIBOR FIX - 18-05-2021

GBP

UK LIBOR FIX - 18-05-2021

US

USD LIBOR FIX - 18-05-2021

GBP Heavy Into Europe

GBP
MNI (London)
  • USD recovery saw GBP/USD extend its corrective pullback away from Thursday's posted YTD high of $1.3710 to $1.3572 Friday. Rate recovered to $1.3607 through the 1600GMT fix, closing the week back around $1.3590.
  • Move lower was driven by the general recovery in the USD, aided by UST yields, though GBP/USD move trailed EUR/USD which kept EUR/GBP close to the base of its 1.0% 10-dma envelope(Friday Gbp0.8885)
  • GBP/USD edged to $1.3612 in opening Asian trade then settled around $1.3600 into Tokyo.
  • USD gained another boost as market reacted to a WSJ report suggesting Yellen will voice support for the strong USD policy at her confirmation hearing Tuesday. Rate stepped its way to an extended low of $1.3560 with recovery efforts looking soggy into Europe.
  • GBP seen under mild pressure with EUR/GBP back inside its 1.0% envelope which may signal further pressure on the pound(possible move back toward the 10-dma, currently at Gbp0.8963 which may make GBP/USD recovery laboured.
  • BOE Bailey speaks with Lord Stern on Climate at 1330GMT in an otherwise data light session. US holiday for MLK expected to make for thin markets into the afternoon.
  • UK CPI Wednesday with UK Retail Sales and flash PMI's Friday.
  • Support $1.3560/50, $1.3515/00, $1.3452(YTD low). Resistance $1.3600/15
  • MNI Techs: GBPUSD retreated Friday, opening a gap with recent highs after Thursday saw resistance at 1.3704, the Jan 4 high and bull trigger probed. A clear breach of this hurdle would confirm a resumption of the current uptrend and open 1.3773, the May 1, 2018 high. Key short-term support has been defined at 1.3452, Jan11 low. A break would signal a near-term reversal. 1.3564 marks initial support, the 20-day EMA.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com