British Pound pares intraday losses; bulls seem hesitant near 1.3600 on firmer USD
The GBP/USD pair rebounds nearly 50 pips following a bearish gap opening at the start of a new week and climbs back to the 1.3600 mark during the Asian session. However, a modest US Dollar (USD) strength might cap any further gains for spot prices.
US President Donald Trump and Iran both rejected each other’s peace proposals for ending the war and the gradual reopening of the Strait of Hormuz amid major disagreements over Iran's nuclear program. This comes on top of renewed hostilities and keeps geopolitical risks in play, which, in turn, assists the safe-haven Greenback to attracts some buyers and should keep a lid on the GBP/USD pair.
Meanwhile, the latest developments trigger a fresh leg up in Crude Oil prices and revive inflationary concerns. Adding to this, Friday's upbeat US Nonfarm Payrolls (NFP) report backs the case for the US Federal Reserve (Fed) to stick to its hawkish stance and remains supportive of elevated US Treasury bond yields. This lends additional support to the USD, and warrants caution for the GBP/USD bulls.
The British Pound (GBP), on the other hand, is underpinned by easing concerns over Prime Minister Keir Starmer’s position, especially after his Labour Party's heavy losses in English local elections and parliamentary votes in Scotland and Wales. Apart from this, the Bank of England's (BoE) hawkish signal that rate hikes could be appropriate if inflation remains persistent supports the GBP/USD pair.
Moving ahead, there isn't any relevant market moving economic data due on Monday, leaving spot prices at the mercy of the USD and incoming geopolitical headlines. Nevertheless, the mixed fundamental backdrop, along with the recent range-bound price action witnessed over the past week or so, makes it prudent to wait for strong follow-through buying before positioning for any further gains.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
NVIDIA (NVDA.US) management changes may affect Anthropic's IPO plans; the market is watching whether the multi-billion-dollar investment will change
With the sudden departure of Nvidia CEO Jensen Huang, the record-breaking initial public offering plan of AI giant Anthropic is being reconsidered by the market.
Nebius Q3 results exceed expectations, capital expenditure rises to $27 billion, ARR target postponed, stock falls over 14% pre-market | Earnings Report Insights
Nebius reported Q3 revenue of $981 million (a year-on-year increase of 571%) and adjusted EBITDA of $466 million, both exceeding expectations. However, the company delayed and lowered its guidance for annual recurring revenue (ARR), stating that it is no longer applicable. Additionally, it significantly raised its 2026 capital expenditure target to $27 billion, with projections to further increase to $40 billion to $45 billion in 2027. The stock price plummeted more than 14% in pre-market trading.
AUD/USD Price Forecast: Breakdown of H&S pattern keeps the pair under pressure
U.S. Stock Market Preview | Major Index Futures Mixed; Nvidia Plunges Pre-market; Fed Officials' Speeches Incoming
Before the U.S. stock market opens on Thursday, November 12, the three major U.S. stock index futures showed mixed movements.
Crypto prices
More
