Jump to content

British Pound Steadies Ahead of US CPI as the US Dollar Pauses. Where To For GBP/USD?


Recommended Posts

BRITISH POUND, GBP/USD, US DOLLAR, CRUDE OIL, HANG SENG, ASX 200 - TALKING POINTS

  • The British Pound is on hold for now as the market awaits US CPI
  • APAC equities moved higher, supported by news reports of state buying
  • All eyes on Thursday’s US CPI. Will USD dominate GBP/USD?
British Pound Steadies Ahead of US CPI as the US Dollar Pauses. Where To  For GBP/

The British Pound has been inching higher this week after last week’s volatility in the aftermath of the Bank of England’s (BoE) rate hike and the ECB’s hawkish pivot.

We will hear from the BoE’s economist Huw Pill later today, but all eyes are on US CPI on Thursday. The market is anticipating a headline annual rate of 7.3%.

Currencies have had a fairly quiet day in Asia, with the US Dollar losing some ground across the board while the Australian and New Zealand Dollars had some gains.

This was despite iron ore sliding on the back of Chinese authorities warning market players not to provide false price information.

APAC equities followed on from the positive Wall Street lead, with all indices in the green today. Hong Kong’s Hang Seng Index (HSI) was the best performer, up over 2%.

This is after China’s state funds were reported to have bought Chinese stocks in the Asian session yesterday and again in the North American session.

The buying in the US is done through what is known as American Depository Receipts (ADR). They allow for foreign companies to be able to trade on US exchanges.

The funds doing the buying are known as the “national team.” It is believed that the objective of the purchases is to provide liquidity and smooth volatility, rather than influence price. Nevertheless, Chinese equities have been weakening so far this year.

Meanwhile, Australia’s ASX 200 was up around 1% despite the Westpac consumer confidence index slipping a touch to 100.8 in February, against 102.2 previously. The index was helped along by CBA, Australia’s largest bank, reporting better than expected earnings before the open.

US equity futures are looking at a slight lift for their open today.

While equities were rallying, bonds continued to sell off, with yields marching higher. US 10-year Treasury rates remain near 1.95% and 2-years are around 1.33%.

Crude oil continued to steady today after pulling back from the highs seen last Friday. A report out overnight from the American Petroleum Institute (API) showed an inventory drop of 2 million barrels in US storage last week.

Japan announced that it will send LNG to Europe should the Ukraine situation deteriorate. It would do this only after all of its own energy needs had been met, however.

Gold continued to inch higher, trading near US$ 1,828 per ounce.

Looking ahead, after a round of speeches from BoE and the ECB officials, a number of Fed speakers will cross the wires. Some commentary from the BoC is due as well.

GBP/USD TECHNICAL ANALYSIS

GBP/USD has been ticking up this week and the 10-day simple moving average (SMA) appears to be crossing the 100-day SMA. This which would signal a Golden Cross. This might indicate that bullish momentum could evolve.

Resistance may lie at the previous highs of 1.3628, 1.3749 and 1.3834. The 260-day SMA might also offer resistance, currently at 1.3744.

Support could be at the pivot point at 1.3359 and the previous low of 1.3161.

GBP/USD CHART

Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com. 9th Feb 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • ASX: NATIONAL AUSTRALIA BANK LIMITED - NAB   Elliott Elliott Wave Technical Analysis TradingLounge (1D Chart)   Greetings, Our Elliott Wave analysis today updates the Australian Stock Exchange (ASX) with NATIONAL AUSTRALIA BANK LIMITED - NAB . We determine that NAB will continue to push higher with wave iii-grey of wave (iii)-orange. We updated our Trade Recommendation (Long Trade with NAB) yesterday. NAB is opening up quite good profits in today's trading session.   ASX: NATIONAL AUSTRALIA BANK LIMITED - NAB   Elliott Wave Technical Analysis   ASX: NATIONAL AUSTRALIA BANK LIMITED - NAB   1D Chart (Semilog Scale) Analysis Function: Major trend (Minute degree, navy) Mode: Motive Structure: Impulse Position: Wave iii-grey of Wave (iii)-orange of Wave ((v))-navy Details: The short-term outlook suggests wave (iii)-orange is unfolding to push higher.   Invalidation point: 34.48   ASX: NATIONAL AUSTRALIA BANK LIMITED - NAB   Elliott Wave Technical Analysis TradingLounge (4-Hour Chart) ASX: NATIONAL AUSTRALIA BANK LIMITED - NAB   Elliott Wave Technical Analysis ASX: NATIONAL AUSTRALIA BANK LIMITED - NAB   4-Hour Chart Analysis Function: Major trend (Minuette degree, orange) Mode: Motive Structure: Impulse Position: Wave ((3))-navy of Wave iii-grey of Wave (iii)-orange Details: The short-term outlook shows that wave (iii)-orange is opening to push higher, it is subdividing into waves i,ii,iii-grey and waves ((1)),((2)),( (3))-navy. We updated our Trade Recommendation (Long Trade with NAB) yesterday. NAB is opening up quite good profits in today's trading session. Invalidation point: 34.83   Conclusion:   Our analysis, forecast of contextual trends, and short-term outlook for ASX: NATIONAL AUSTRALIA BANK LIMITED - NAB   aim to provide readers with insights into the current market trends and how to capitalize on them effectively. We offer specific price points that act as validation or invalidation signals for our wave count, enhancing the confidence in our perspective. By combining these factors, we strive to offer readers the most objective and professional perspective on market trends.   Technical Analyst: Hua (Shane) Cuong, CEWA-M (Master’s Designation). Source : Tradinglounge.com get trial here!  
    • Elliott Wave Analysis TradingLounge Daily Chart, ChainLink/ U.S. dollar(LINKUSD) LINKUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Double Corrective Position: Wave Y Direction Next higher Degrees: Wave ((II)) of Impulse Wave Cancel invalid Level: 8.498 Details: Wave (II) is equal to 61.8% of Wave (I) at 8.86 Level ChianLink/ U.S. dollar(LINKUSD)Trading Strategy: ChainLink overall is still in the period of correction. In the position of wave (II) with a double corrective pattern, the view is therefore for a short-term pullback before rising again in wave (III), waiting for the correction to complete to rejoin the uptrend. ChainLink/ U.S. dollar(LINKUSD)Technical Indicators: The price is below the MA200 indicating a downtrend, The Wave Oscillator is a Bearish Momentum.   Elliott Wave Analysis TradingLounge H4 Chart, ChainLink/ U.S. dollar(LINKUSD) LINKUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Double Corrective Position: Wave Y Direction Next higher Degrees: Wave ((II)) of Impulse Wave Cancel invalid Level: 8.498 Details: Wave (II) is equal to 61.8% of Wave (I) at 8.86 Level ChainLink/ U.S. dollar(LINKUSD)Trading Strategy: Chainlink overall is still in the period of correction. In the position of wave (II) with a double corrective pattern, the view is therefore for a short-term pullback before rising again in wave (III), waiting for the correction to complete to rejoin the uptrend. Chainlink/ U.S. dollar(LINKUSD)Technical Indicators: The price is below the MA200 indicating a downtrend, The Wave Oscillator is a Bearish Momentum.   Technical Analyst : Kittiampon Somboonsod Source : Tradinglounge.com get trial here!
    • All Those Token is FAKE The Moment The Token is Live For TRADE On The Exchanges The Price Goes Up Then You Buy At The Top Thinking The PRICE WILL Continue To Go Up And Then What Happen is immediately After You Hit The GREEN Button To Buy The PRICE Starts  GOING DOWN AND Never Back Up Again And You Loss You're Money Thanks What's Fake Token is .
×
×
  • Create New...
us