MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: ECB Should Be Close To 2% In Next Quarters -Centeno

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI: US NOV IMPORT PRICES +0.1%

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 Range Tightens  to $1.3800-50

GBP
MNI (London)
  • Having touched an US NFP react low of $1.3779 last Friday GBP/USD has managed to hold back above $1.3800, despite EUR and JPY extending losses versus the USD.
  • However, USD buoyancy has restricted recovery efforts in the $1.3866/70 area.
  • GBP/USD touched an early Asia low of $1.3802, as USD opened the session with a bid tone allowing USD/JPY to break above Y109.00.
  • As JPY crosses played catch-up on the USD/JPY rally so GBP/USD recovered, pulled higher by GBP/JPY, with rate edging up to $1.3850 ahead of the European open.
  • GBP seen gaining support as thoughts move away from negative rates and looking forward to an eventual hike, BOE Governor Bailey noted Monday that there is 'light at the end of the tunnel' as he pointed to falling COVID infections and vaccine rollout. He also so reasons to believe that so-called long-term scarring damage to the economy likely to be lower than in past recessions.
  • Support remains into $1.3800, a break to expose $1.3779/76(Mar05 low/Feb12 low) ahead of $1.3759(Jan27 high) then $1.3721(see MNI Techs below). Resistance $1.3866/70, a break of $1.3880 to open a push back above $1.3900.
  • A light UK data/speaker calendar for Tuesday. Market direction to come from UST yields, though with a light US calendar should ease volatility.
  • MNI Techs: Cable is consolidating but remains in a bear mode. Price has recently cleared the 20-day EMA and a number of near-term support levels. The focus is on $1.3763 next, the 50-day EMA. Clearance of this average would leave the key bull channel support at $1.3721 exposed. The channel is drawn off the Nov 2, 2020 low and a break would highlight an important short-term reversal. Firm resistance remains $1.4017, Mar 4 high.
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.