GBP/USD reversed the positive bias seen through the Asian trading hours on Wednesday, with sellers being drawn in at about 1.3480. Even through this pullback, the currency pair has remained in a bullish sentiment, with an upside target forming above the 1.3550 figure. EUR/USD, in contrast, exhibits overall bearish market sentiment by staying under pressure near the 1.1300 line today.
During the first few hours of trading, GBP/USD managed to be relatively resistant to the sell stress which goes to show that market participants are still interested. So analysts are understandably pumped about the pair’s bullish vibe. If it manages to break above the resistance level of around $30k, it has the potential to climb much higher. The attention now turns to the next major economic data releases and speeches from Federal Reserve officials that could change the market’s narrative.
At the same time, EUR/USD remains extremely weak, trading south of the 1.1300 figure during the European session. The US Dollar is realizing a very big rebound against all of Europe’s currencies, particularly the Pound Sterling. The latest economic signals from the United States have taken a decidedly positive tone. This strength in the Greenback has played a role in the pressure on EUR/USD, which continues to be on the back foot.
Market participants are figuring out how to navigate the market right now. They are especially focusing their attention around major happenings such as Fedspeak and the forthcoming release of the FOMC Minutes. These still to be heard discussions should provide new directional forceful momentum for speculators and investors both. The market has proven to be especially sensitive to any hints on future increases of interest rates, which would have an immediate and major effect on currency values.
NZD/USD is in the news as it headed to the 0.6000 dime. Wednesday’s Asian session saw the currency pair recoup some of that loss. This explosive growth indicates a potential recovery route for the New Zealand Dollar. Traders are eyeing acting Governor Hawkesby’s utterances as markets await more guidance. They want assurances that US interest rate policy will spare some thought for the rupee’s medium-term path.