MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI BRIEF: Ontario To Cut U.S. Energy Flows When Tariffs Hit

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI: SWEDEN FINAL NOV CPIF +1.8% Y/Y

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

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/USD Holds Gains Ahead of UK Retail Sales. Focus on Flash PMI's

GBP
MNI (London)
  • Recovery off Wednesday's pullback low of $1.3830 picked up momentum through Thursday's 0800GMT fix, the rally able to move through the recent high of $1.3952 in early NY before posting a fresh YTD high at $1.3986.
  • Failure to push ontoward $1.4000 saw rate drop back to $1.3927, meeting support placed just ahead of its 38.2% retrace ($1.3830-1.3986) at $1.3926.
  • Dip attracted fresh demand that lifted it back to $1.3980 ahead of the close($1.3974).
  • Early consolidation around $1.3970 in Asia before rate was pressed back to $1.3952 only to again meet willing buyers that have edged it to $1.3984 ahead of Europe.
  • GBP retains a buoyant tone as markets turn attention toward UK Retail Sales at 0700GMT (median -3.0%mm, -0.8%yy; ex-auto -2.1%mm, 2.7%yy). Flash PMI's to gain main attention at 0930GMT (median Mfg 53.1, Svcs 42.0, Comp 42.6). CBI Trends due at 1100GMT.
  • GBP/USD resistance $1.3986, $1.3998(Apr26 2018 high-see MNI Techs below) with weak talk suggesting possible barrier interest at $1.4000(no confirmation).
  • Rate has been tracking the topside of its 1.0% 10-dma envelope, currently coming through at $1.4005. A 1.618% swing projection, of the move down from $1.3952 to $1.3830 seen at $1.4027 ahead of Apr23 2018 high at $1.4031.
  • Support $1.3950, $1.3927/26, more into $1.3900, stronger between $1.3890/70.
  • MNI Techs: GBPUSD rallied once again yesterday and topped the Tuesday high of 1.3952, taking out key resistance on the move higher. A bullish tone remains intact and Cable maintains a bullish price sequence of higher highs and higher lows. Moving average studies are in a bull mode too. Focus on $1.3998 next, Apr 26, 2018 high and $1.4031, Apr 23 high. On the downside, firm near-term support lies at 1.3776, Feb 12 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.