Cable was able to gain more positive traction for the 4th consecutive session on Thursday as a subdued Dollar enabled the rate to press towards the 1.38 handle. Despite this, many economist believe Sterling’s further upside will be capped. Analysts at FXStreet note that the “GBP/USD pair held on to its intraday gains” on Wednesday “albeit lacked any follow-through buying and remained capped below the 1.3800 mark post-US macro releases… The pair built on this week's goodish rebound from the 100-day SMA support, around the 1.3670-65 region and gained some positive traction for the fourth consecutive session on Thursday. However, a modest US dollar rebound from four-week lows kept a lid on any further gains for the GBP/USD pair.”.
With this said, the Greenback is also struggling. Economists claims that “the intraday USD uptick lacked any obvious fundamental catalyst and remained capped amid the ongoing decline in the US Treasury bond yields. Even the incoming positive economic data failed to impress the USD bulls as investors seem convinced that the Fed will keep interest rates low for a longer period”. Retail Figures published yesterday showed a surge by 9.8% in March against 5.9% forecasted. Adding to this, US Retail Sales Control Group, regional manufacturing indices and Jobless Claims all surpassed their consensus forecasts.
GBPUSD opened Thursday subtly trading around the 1.3772 mark before quickly trying to advance on the Dollar. The pair was able to close at 1.3794, just below the all-important 1.38 handle.
GBPEUR was also able to catch some minor upside on Thursday. The pair opened at 1.1501 and closed at 1.1522.
Albeit minor, EURUSD made a rare loss on Wednesday, opening at 1.1974 and closing at 1.1971.