GBP/USD on its way to 1.5100

FXStreet (Edinburgh) - A bout of risk appetite is now lifting GBP/USD to test session highs around the 1.5100 neighbourhood.

GBP/USD hinges on risk, eyes on BoE

The sterling is following the rest of the risk-associated assets, hurt by the re-emergence of USD buying after yesterday’s inactivity in the US markets. The upcoming sessions will be key for GBP traders, as the BoE will publish its minutes followed by the critical labour market data (Wednesday) ahead of Friday’s Retail Sales. The pound has been suffering the solid performance of the greenback in recent months, but also the rate hike expectations in the UK for the present year seem to have vanished, removing an important driver of GBP-strength.

GBP/USD key levels

The pair is now losing 0.13% at 1.5094 facing the immediate support at 1.5075 (low Jan.16) ahead of 1.5034 (18-m low Jan.8) and finally 1.5028 (low Jul.15 2013). On the flip side, a breakout of 1.5180 (recovery high Jan.19) would aim for 1.5267 (high Jan.15) and then 1.5270 (high Jan.14).

Treasury yields cap gains in USD/JPY pair

The gains in the USD/JPY pair are being capped by the Treasury yields in the US, which fail to gain strength due to the weak global growth forecasts published by the International Monetary Fund (IMF).
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USD/JPY top heavy, supported at 116.50 – OCBC Bank

In the opinion of Emmanuel Ng, FX Strategist at OCBC Bank, USD/JPY would remain bullish bolstered by USD momentum...
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