Forex News Timeline

Friday, March 29, 2024

The GBP/USD pair trades sideways around 1.2622 during the early Asian session on Friday.

GBP/USD trades on a flat note near 1.2622 in Friday’s early Asian session.  The UK GDP contracted by 0.3% QoQ in Q4 2023, unchanged from preliminary estimates. The final US Q4 GDP expanded 3.4% against the previous estimate of 3.2%, better than expected. The US February Core PCE will be the highlight on Friday.The GBP/USD pair trades sideways around 1.2622 during the early Asian session on Friday. The market is likely to be mute in light trading on Good Friday. Later in the day, the US Core Personal Consumption Expenditures (PCE) Price Index will be released. The Fed’s preferred inflation gauge is estimated to remain stable at 2.8% YoY.

The Pound Sterling (GBP) remains under some selling pressure after the economic data showed that the UK economy went into recession in the second half of 2023. The nation’s Gross Domestic Product (GDP) contracted by 0.3% QoQ in the fourth quarter, unchanged from preliminary estimates. However, the GDP numbers did not impact expectations for monetary policy, as investors already factored in a mild recession late last year. 

Additionally, the higher speculation that the Bank of England (BoE) will begin three quarter-point reductions in rates this year undermines the GBP. The BoE Governor Andrew Bailey said that interest rate cuts will be ‘in play’ at future BoE policy meetings.

On the other hand, the US economy remained robust in the fourth quarter of last year. This, in turn, provides some support to the Greenback and drags the GBP/USD pair lower. The final US Q4 GDP came in better than expected, growing 3.4% from the previous 3.2% estimate. Meanwhile, the weekly Initial Jobless Claims for the week ended March 22 were at 210K from the previous reading of 212K. Finally, the March Michigan Consumer Sentiment Index was upwardly revised to 79.4, above the preliminary estimate of 76.5.  GBP/USD Overview Today last price 1.2625 Today Daily Change -0.0016 Today Daily Change % -0.13 Today daily open 1.2641   Trends Daily SMA20 1.2719 Daily SMA50 1.2679 Daily SMA100 1.2649 Daily SMA200 1.2591   Levels Previous Daily High 1.2641 Previous Daily Low 1.2606 Previous Weekly High 1.2804 Previous Weekly Low 1.2575 Previous Monthly High 1.2773 Previous Monthly Low 1.2518 Daily Fibonacci 38.2% 1.2628 Daily Fibonacci 61.8% 1.2619 Daily Pivot Point S1 1.2617 Daily Pivot Point S2 1.2593 Daily Pivot Point S3 1.2581 Daily Pivot Point R1 1.2653 Daily Pivot Point R2 1.2665 Daily Pivot Point R3 1.2688    

South Korea Industrial Output (YoY) came in at 4.8% below forecasts (5.8%) in February

South Korea Service Sector Output rose from previous 0.1% to 0.7% in February

South Korea Industrial Output Growth came in at 3.1%, above forecasts (0.5%) in February

The GBP/JPY barely moved on Thursday amid thin liquidity conditions and is hovering around 191.00, virtually unchanged as Friday’s Asian session begins.

GBP/JPY hovers around 191.00, reflecting market caution ahead of Japanese unemployment and industrial production updates.Wall Street ends Q1 on a mixed note, with UK's recession confirmation and vigilance over JPY's weakness influencing sentiment.Technical analysis suggests potential for movement if GBP/JPY breaches key levels, with 192.00 and 193.00 as notable targets.The GBP/JPY barely moved on Thursday amid thin liquidity conditions and is hovering around 191.00, virtually unchanged as Friday’s Asian session begins. Wall Street posted a stellar first quarter of 2024, with the S&P 500 and the Dow Jones finishing in the green. The outlier was the Nasdaq Composite, which dropped 0.12% in the last trading day of Q1. In addition, economic data from the UK showed that Britain’s economy hit a technical recession, as expected by the market consensus. In Japan, authorities remain vigilant about the Japanese Yen's (JPY) weakness, which sent the USD/JPY rallying near 152.00. As the Asian session begins, the Japanese economic docket will reveal the unemployment rate for February, which is expected to remain at 2.4%. At the same time, Industrial Production figures for the same month are expected to rise from -6.7% MoM to 1.4%, while Retail Sales are foreseen to expand by 3%.GBP/JPY Price Analysis: Technical outlook The GBP/JPY is subdued as liquidity conditions tumble. If buyers regain control, they must push prices above the Tenkan-Sen level at 191.57, which could open the door to challenge 192.00. Further upside is seen at 193.00, followed by the year-to-date (YTD) high at 193.53 On the flip side, if the pair drops below 191.00, that would pave the way for further losses. The next support would be the Kijuin-Sen at 190.74, followed by the 190.00 mark. GBP/JPY Price Action – Daily ChartGBP/JPY Overview Today last price 191.06 Today Daily Change -0.09 Today Daily Change % -0.05 Today daily open 191.15   Trends Daily SMA20 190.34 Daily SMA50 189.26 Daily SMA100 186.67 Daily SMA200 184.78   Levels Previous Daily High 191.54 Previous Daily Low 190.51 Previous Weekly High 193.54 Previous Weekly Low 189.54 Previous Monthly High 191.33 Previous Monthly Low 185.23 Daily Fibonacci 38.2% 190.9 Daily Fibonacci 61.8% 191.15 Daily Pivot Point S1 190.6 Daily Pivot Point S2 190.04 Daily Pivot Point S3 189.57 Daily Pivot Point R1 191.62 Daily Pivot Point R2 192.1 Daily Pivot Point R3 192.65    
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