MNI BRIEF: BOJ Tankan: Business Inflation Expectations Solid

MNI BRIEF: RBA Details Hypothetical Monetary Policy Paths

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GBP Off YTD Highs But Underlying Tone Remains Buoyant

GBP
MNI (London)
  • GBP/USD posted a fresh YTD high of $1.3759 in early Europe Wednesday before upside momentum quickly faded through the 0800GMT fix.
  • Heavier reversal pressure from EUR sales, following dovish comments from ECB Knot(a usual hawk) which dragged GBP/USD to $1.3721, but some pressure was diverted into EUR/GBP which was pressed down to challenge recent low at Gbp0.8829.
  • EUR/USD break below $1.2100 in early NY pressed GBP/USD down to $1.3659 but again pressure diverted into EUR/GBP as the cross dropped to Gbp0.8813.
  • GBP/USD recovered to $1.3731 before it closed around $1.3690.
  • Early Asia saw rate touch $1.3695 before general risk aversion saw rate move through Wednesday's low to $1.3651 before it recovered to $1.3683. Rate settled above $1.3660 but was seen meeting further headwind resistance above $1.3680 into Europe.
  • EUR/GBP traded between Gbp0.8840/55 in Asia, off Wednesday's lows but remains below its key 10-dma (current Gbp0.8872).
  • GBP support $1.3651/45(Int.Day low/76.4% $1.3610-1.3759), a break of $1.3640 to expose the Jan26 low at $1.3610. Resistance $1.3695/1.3705 ahead of stronger $1.3718/34(61.8%-76.4% $1.3759-1.3651/ $1.3731 NY high Jan27).
  • A light domestic data calendar. Focus on US GDP, Weekly Claims and ECB Schnabel speak. Equity markets the barometer for risk as month-end approaches.
  • MNI Techs: GBPUSD traded to a fresh high of 1.3759 yesterday and despite a pullback from session highs, the uptrend remains intact. Yesterday's gains maintain the bullish price sequence of higher highs and higher lows. Attention is on 1.3773 next, May 1 2018 high. Near-term firm support has been defined at 1.3520, Jan 18 low. A breach would signal scope for a deeper S/T sell-off and expose 1.3452, Jan 11 low. Initial support is at 1.3610, Tuesday's low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

To read the full story

Close

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.