GBPUSD Holds Steady Above 1.41

US Industry Shows Strength as Inflation Expectations Decline

USD gives back gains as risk currencies rise

Euro Rises To A Three-Month High GBPUSD Holds Steady Above 1.41  - 1

The euro currency finally broke past the resistance area of 1.2177 – 1.2144. The breakout pushed the common currency to a three-month high on an intraday basis.

The gains come as the US dollar failed to maintain its reversal on Wednesday.

If the current momentum continues then we might get to see the Euro once again attempting to test the 6 January highs of 1.2349.

However, ahead of these gains, a pullback to establish support near 1.2177 would be ideal.

For the moment, the EURUSD is still not out of the woods unless we see a higher low forming above the resistance area.

The British pound sterling is giving back the gains from Wednesday. The declines come as the cable rose to a new three and half year high earlier this week.

The current declines come as investors head into the weekend with the drop likely coming as a result of profit-taking.

The GBP currency has enjoyed a strong rally and got an additional boost as the UK is already preparing plans for re-opening its economy.

For the moment the pullback is likely to be met with skepticism. A continuation below Wednesday’s low of 1.4080 could, however, see the currency pair making a short-term correction.

The downside could be supported near the round number 1.4000 level.

Crude Oil Holds Steady At A 13-Month High GBPUSD Holds Steady Above 1.41  - 2

Oil prices are steady after rising to a new 13-month high. The gains come as the latest report shows a drop in US Crude oil output.

The weaker dollar is also helping the commodity to maintain its hold. For the moment, prices are supported near the trendline.

Still, even a close below the trendline could keep the upside bias intact.

The support area near 60.87 will hold the prices from posting further declines.

But a close below 60.87 could potentially open the way for oil prices to fall further. This could see the 57.35 level coming under scrutiny next.

Gold Prices Slip As Treasury Yields Rise GBPUSD Holds Steady Above 1.41  - 3

The precious metal continues to trade weak with price action extending declines for a third consecutive day.

The declines come as Treasury yields are rising higher. Investors are betting that the global economy will re-open quicker than anticipated with appetite for further stimulus falling.

Gold prices have been trading within the 1817 and 1764 levels since the middle of February.

We expect this sideways range to continue.

To the downside, gold prices will likely retest the previously formed support at 1764.22.

US Industry Shows Strength as Inflation Expectations Decline

John Benjamin

John Benjamin is a Macro-Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.