GBP/USD gains positive traction and moves away from a three-month low

GBP/USD surges past 1.2500, recovers further from multi-month low amid notable USD supply

The GBP/USD pair attracts some dip-buying after filling the weekly bearish gap during the Asian session on Monday and climbs further beyond the 1.2500 psychological mark, hitting a fresh daily top in the last hour. Spot prices currently trade around the 1.2520-1.2525 area, up nearly 0.50% for the day, and for now, seem to have snapped a four-day losing streak, though any meaningful recovery from a three-month low touched last Thursday still seems elusive.

A strong pickup in demand for the Japanese Yen (JPY), bolstered by Bank of Japan (BoJ) Governor Kazuo Ueda’s hawkish comments over the weekend, exerts some pressure on the US Dollar (USD). Apart from this, a positive tone around the equity markets drags the safe-haven buck away from its highest level since March set last week and turns out to be another factor lending some support to the GBP/USD pair. Read more…

GBP/USD struggles below 1.2500, 200-day SMA is the last line of defence for bulls

The GBP/USD pair opens with a modest bullish gap on the first day of a new week, albeit lacks any follow-through and remains below the 1.2500 psychological mark through the first half of the Asian session.

Having recorded its longest winning streak in nearly nine years, the US Dollar (USD) pulls back from a six-month high amid some repositioning trade ahead of this week’s key US macro data and the European Central Bank (ECB) event risk. The crucial US consumer inflation figures will be released on Wednesday, followed by the Producer Price Index (PPI) on Thursday, which will be accompanied by monthly Retail Sales data. This, along with volatility infused by the highly-anticipated ECB decision, will influence the USD price dynamics and provide some meaningful impetus to the GBP/USD pair. Read more…