GBP/USD returns above 1.3400 as US dollar rally loses momentum

On Friday, the pound makes up for losses against the US dollarand price action returned above 1.3400 before the US session open, up from Thursday’s lows near 1.3360. The pair is on track to end the week virtually unchanged after weakening by around 0.7% in the previous two weeks.

The U.S. dollar gained support from an unexpected drop in U.S. jobless claims on Thursday, which fell to its lowest level since November in the week of Jan. 10. Additionally, the New York Empire State and Philadelphia Fed Manufacturing reports highlighted significant improvements in business conditions in their regions, increasing confidence in a tough U.S. economic recovery. Read more…

GBP/USD: Chance to Test GBP 1.3355 – UOB Group

There is a chance that GBP will test 1.3355; the next support at 1.3315 is probably out of reach for now. Longer term, the outlook for GBP is negative; could fall to 1.3355, potentially reaching 1.3315, note UOB Group currency analysts Quek Ser Leang and Lee Sue Ann.

24-HOUR VIEW: “Two days ago GBP was trading sideways. Yesterday we expected GBP to continue to trade sideways between 1.3410 and 1.3460.” However, instead of fluctuating, GBP fell sharply to a low of 1.3364. Read more…

The pound sterling remains volatile against the US dollar

The pound sterling (GBP) is trading cautiously near a four-week low around 1.3360 against the US dollar (USD) during Friday’s European trading session. GBP/USD pair is under pressure from the US dollar (USD) is trading strongly amid expectations that the Federal Reserve (Fed) will pause its monetary easing campaign at its monetary policy meeting later this month.

At press time, the U.S. Dollar Index (DXY), which tracks the value of the U.S. dollar against six major currencies, was holding gains near a six-week high of 99.50 posted on Thursday. Read more…