GBP/USD deflates from 1.2260, risk-off weighs

The pound remains on the front foot against its American rival in early Europe, keeping GBP/USD well bid near the mid-point of 1.22 handle.

The cable staged a solid comeback from a dip to 1.2210 and went to hit daily highs at 1.2258, before meeting fresh offers to now trade at 1.2247, still up +0.16% on the day.

The spot remained supported amid ongoing weakness in US dollar; however, further recovery appears capped amid wide-spread risk-aversion as global equities drop alongside oil prices.

The GBP/USD pair is likely to get influenced by risk trends and upcoming US jobless claims, goods trade balance and EIA crude oil inventory data up for grabs in the day ahead.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2264 (5-DMA), 1.2300 (round number and 1.2379 (Dec 22 high). While supports are seen at 1.2210 (daily low) and 1.2182 (daily S1) and below that at 1.2141 (Oct 31 low).

 

Eurozone: Buyer beware – BNPP

Research Team at BNP Paribas notes that the Eurozone’s economic recovery has proven to be resilient to adverse shocks. Key Quotes “Domestic demand,
Leia mais Previous

What does consensus expect next year? – Nomura

Analysts at Nomura lists down the important global developments expected by the consensus in the New Year. Key Quotes “Political risk behind us: Ana
Leia mais Next