MNI: POWELL SAYS RATE CUT COULD BE ON TABLE AS EARLY AS SEPT.

MNI: FOMC Statement Comparison: July vs June

MNI: FED HOLDS RATES AT 5.25%-5.5%, VOTE 12-0

MNI China Daily Summary: Wednesday, July 31

MNI: PBOC Net Injects CNY185.57 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1346 Weds; -1.39% Y/Y

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -3.44M TO 433.0M JUL 26 WK

MNI: US NAR JUN PENDING HOME SALES INDEX 74.3 V 70.9 IN MAY

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

USD Correction and UK Lockdown Weigh on GBP/USD

GBP
MNI (London)
  • USD continued to recoup early 2021 losses in Asia, GBP/USD extended its corrective pullback away from its Jan04 high of $1.3704(YTD high) to $1.3492(YTD low).
  • However, demand seen emerging into the dip with rate edging back to $1.3514 into Europe.
  • GBP enthusiasm into the new year, following the Brexit trade agreement, began to fade as attention was switched to COVID spread in the UK which in turn prompted the Govt to impose lockdown restrictions with its effect on growth. Vaccine roll out seen as a counter but effects of this will take some weeks/months.
  • Growth effects highlight Friday's monthly GDP release(start of a double-dip recession?).
  • Market seen long GBP but seen comfortable while rate holds above $1.3400.
  • Support $1.3492, $1.3480, $1.3455/45, $1.3430. Resistance $1.3540/50, $1.3577/80, $1.3600, $1.3636.
  • MNI Techs: GBPUSD is weaker this morning and still trading below recent highs. The pair has breached the 20-day EMA and this signals scope for a deeper short-term pullback. Note, a move lower is likely a correction with underlying bullish trend conditions still intact. Attention turns to support at 1.3430, Dec 28 low and 1.3388, the 50-day EMA. On the upside, price needs to trade above Friday's 1.3636 high to refocus attention on last week's high of 1.3704.
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.