Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Back

GBP/USD sees strong downward move amid USD strength, markets eager for US labor data

  • The pair slipped below the 20-day SMA towards 1.2320.
  • The US Dollar staged a notable recovery propelled by increasing yield rates and a risk-off market mood.
  • December's labor market figures are poised to influence the bets on the next Fed moves.
  • If the US economy continues to show resilience, the pair is poised for further downside.

In Tuesday's session, GBP/USD witnessed a substantial dip, trading at around 1.2620, with significant downward momentum primarily triggered by USD strength. A risk-off market environment ahead of key labor market figures from the US contributed to investors seeking refuge in the US Dollar. In addition, the negative outlook on the British economy adds to the selling pressure.

Lately, the UK economy seems shaky, with signs of easing food price inflation while expectations of Bank of England's rate cuts remain elevated for 2024. Moreover, data on the robustness of the US economy suggest that the US dollar may appreciate further against the British pound, making the exchange rate prospects for GBP/USD somewhat bearish in the short term. However, the outcome of the Nonfarm Payrrols, Average Hourly Earnings, and Unemployment rate figures from December will set the pace for the pair for the short term, as weak readings may intensify the dovish bets on the Federal Reserve (Fed).

To add to that, US bond yields are on an upward trajectory, making the Greenback gain interest. The 2-year rate is 4.32%, while the 5-year yield is 3.91% while the 10-year rate stands at 3.94%. The ascent in these yields provides a boost to the USD volume.

GBP/USD technical outlook

The daily Relative Strength Index (RSI), despite bearing a negative tilt, is still rooted in the positive territory, hinting at a remaining demand for the pair. However, the momentum seems to favor sellers as the Moving Average Convergence Divergence (MACD) decreases its green bars, suggesting a dwindling buying interest.

Meanwhile, the Simple Moving Averages (SMAs) paint a slightly different picture. The pair continues to trade under the influence of the bulls in the broader time horizon, attributed to its position above both the 100-day and 200-day SMAs, but the pair has slipped below the 20-day SMA, signaling a possible shift towards a neutral to bearish bias in the shorter term.

In summary, there is a sense of indecision in the pair's short-term technical outlook as buyers appear to sustain control over the wider framework, but selling momentum gradually strengthens.


GBP/USD daily chart

 

 

 

USD/JPY rebounds from 141.00 as Greenback climbs from recent lows

The USD/JPY rebounded on Tuesday, testing 142.00 after a clean bounce from the 141.00 handle to kick off the first trading week of 2024.
Read more Previous

Forex Today: US Dollar gains on market concerns

What you need to take care of on Wednesday, January 3: The US Dollar was the overall winner on Tuesday, appreciating sharply against all its major rivals.
Read more Next