2020-09-01 • Updated
GBP/USD is climbing upward. The break out above 1.3500 will drive the pair to multi-year highs.
The massive sell-off of the US dollar and the current risk-on mood are driving the British pound higher and higher. That helped GBP/USD to reach levels unseen since December of the last year at 1.3460. As for the greenback, the Fed’s Powell announced last week that interest rates will stay at low levels for longer, which hit hard the already weak USD. The Fed’s dovish statement has been reinforced by yesterday’s speech of vice Fed chair Richard Clarida.
Speaking about the upbeat market sentiment, this morning the Chinese manufacturing PMI came out better than analysts expected. As you may know, investors pay closer attention to China’s economic indicators as they assess how fast the global economy may recover. Therefore, positive Chinese data improved the overall market mood.
In addition, AstraZeneca, the biotech company based in Britain, is planning to hold 50 000-strong trial for its Covid-19 vaccine candidate. It’s said that this firm has one of the highest potentials to create an effective vaccine and save the whole world from the pandemic.
An interesting fact that the British economy itself hasn’t had any significant influence on the pound. Moreover, investors shrugged off the Brexit uncertainty, concerns over more UK redundancies, and rising infections. The global optimism has taken hold.
Tomorrow the governor of the Bank of England will deliver a speech about the economic impact of coronavirus. As a rule, if the central bank is hawkish, the pound will rise. Otherwise, if the central bank is dovish, the pound will drop. Follow the report at 16:00 MT time on Wednesday and join the market flow!
GBP/USD is trading just below the key resistance of 1.3500. If the pair breaks it out, the way to the high of September 2017 at 1.3550 will be clear. In the opposite scenario, the move below yesterday’s low of 1.3300 will drive the price lower to the next support of 1.3180.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
