GBP/USD Gains Strength While EUR/GBP Recovers

Economic

Forex

Summary:

GBP/USD is attempting a fresh increase from the 1.2600 zone. EUR/GBP is gaining pace and might extend its upward move above the 0.8300 zone.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today

The British Pound is attempting a decent increase above the 1.2620 zone against the US Dollar.

There is a connecting bullish trend line forming with support at 1.2625 on the hourly chart of GBP/USD at FXOpen.

EUR/GBP started a fresh increase above the 0.8285 resistance zone.

There is a major bullish trend line forming with support at 0.8300 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a downside correction from the 1.2690 zone. The British Pound traded below the 1.2650 zone against the US Dollar.

A low was formed near 1.2605 and the pair is now attempting a recovery wave. There was a break above the 50% Fib retracement level of the downward move from the 1.2690 swing high to the 1.2605 low.

The pair even spiked above the 76.4% Fib retracement level of the downward move from the 1.2690 swing high to the 1.2605 low and settled above the 50-hour simple moving average.

On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.2675. The next major resistance is near the 1.2690 level. If the RSI moves above 60 and the pair climbs above 1.2690, there could be another rally. In the stated case, the pair could rise toward the 1.2750 level or even 1.2820.

On the downside, there is a major support forming near 1.2625. There is also a connecting bullish trend line forming with support at 1.2625. If there is a downside break below the 1.2625 support, the pair could accelerate lower.

The next major support is near the 1.2605 zone, below which the pair could test 1.2560. Any more losses could lead the pair toward the 1.2525 support.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh increase from the 0.8265 zone. The Euro traded above the 0.8285 level to move into a positive zone against the British Pound.

The EUR/GBP chart suggests that the pair settled above the 50-hour simple moving average and 0.8300. Immediate resistance is near 0.8305. The next major resistance for the bulls is near the 0.8320 zone.

A close above the 0.8320 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8365. Any more gains might send the pair toward the 0.8400 level in the coming days.

Immediate support sits near a major bullish trend line at 0.8300 and the 23.6% Fib retracement level of the upward move from the 0.8275 swing low to the 0.8305 high. The next major support is near the 0.8285 zone.

The 61.8% Fib retracement level of the upward move from the 0.8275 swing low to the 0.8305 high is also at 0.8285. A downside break below the 0.8285 support might call for more downsides.

In the stated case, the pair could drop toward the 0.8265 support level. Any more losses might send the pair toward the 0.8240 level in the near term.

Source: ACTIONFOREX

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Warren Takunda

Stocks

Asian shares were mixed on Wednesday, with Chinese markets gaining after Wall Street extended its losses on worries over inflation and tariffs.

The rally in Chinese shares was led by gains for technology companies. Hong Kong’s Hang Seng jumped 3.4% to 23,811.21, while the Shanghai Composite index added 0.8% to 3,372.74.

Hong Kong-traded shares in food delivery company Meituan surged 10.2%, while e-commerce giant Alibaba gained 5.7%. Gaming and technology company Tencent Holdings advanced 3.4% and search engine and AI company Baidu was up 3.7%.

Such companies have regaining some strength as Beijing has indicated stronger support for the private sector after years of crackdowns on tech companies.

Elsewhere in the region, Tokyo’s Nikkei 225 index shed 0.8% to 37,928.96, as investors sold shares in big Japanese trading companies following gains driven by billionaire Warren Buffett’s disclosure in his annual letter to shareholders that he increased Berkshire Hathaway’s investments in those companies.

The Kospi in Seoul rose 0.4% to 2,641.09.

Australia’s S&P/ASX 200 gave up 0.1% to 8,240.70. In Taiwan, the Taiex gained 0.5%. Thailand’s SET was up 0.9%.

On Tuesday, some of Wall Street’s brightest stars lost more of their shine after a report said U.S. households are getting more pessimistic about the economy.

The S&P 500 fell 0.5% to 5,955.25, falling as much as 1.2% during the day.

The Nasdaq composite sank 1.4% to 19,026.39 as several influential Big Tech companies lost momentum and screeched lower. But the majority of stocks nevertheless rose, which helped the Dow Jones Industrial Average add 0.4% to 43,621.16.

Nvidia fell 2.8%, while Tesla tumbled 8.4%.

Nvidia is due to announce its profit on Wednesday, its first earnings report since a Chinese upstart, DeepSeek, upended the artificial-intelligence industry by saying it has developed a large language model that can compete with big U.S. rivals without having to use the most expensive chips.

That called into question all the spending Wall Street had assumed would go into not only Nvidia’s chips but also the ecosystem that’s built around the AI boom, including electricity to power large data centers.

Weaker than expected economic reports have siphoned away the momentum that took Wall Street to repeated records in recent months.

“What was supposed to be a soft-landing narrative is quickly turning into a hard dose of reality,” Stephen Innes of SPI Asset Management said in a report.

“The U.S. economic backdrop is shifting sharply lower, a stark contrast to the euphoria that defined the start of ’25. And now, investors are scrambling to adjust their positioning on the fly,” he said.

The U.S. economy still appears to be in solid shape, and growth is continuing at the moment. But for the first time since June, a measure of consumers’ expectations for the economy in the short term fell below a threshold that usually signals a recession ahead, according to The Conference Board. The increase in pessimism was broad-based and carried across both higher- and lower-income households, as well as older and younger ones.

Wall Street tracks consumer confidence because strong spending is what helps keep stave off recession. And Tuesday’s report echoed what an earlier report from the University of Michigan suggested: Consumers see the current situation as OK, but they’re worried about the future.

In other dealings early Wednesday, Bitcoin was trading at $88,800.

Treasury yields pulled back as investors herded into investments generally seen as safer in times of uncertainty. Yields have been swinging since President Donald Trump’s election amid worries over how his policies on tariffs, immigration and taxes could affect the global economy.

Trump has antagonized U.S. trading partners recently, threatening to raise tariffs and inviting them to retaliate with import taxes of their own. Trump said Monday that tariff hikes on imports from Canada and Mexico will move ahead after a one-month delay.

U.S. benchmark crude oil gained 18 cents to $69.11 per barrel. Brent crude, the international standard, dropped $1.37 to $72.68 per barrel.

The dollar rose to 149.60 Japanese yen from 149.03 yen. The euro slipped to $1.0494 from $1.0515.

Source: AP

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Alex

Economic

Japan index of leading economic indicators gained from November, though the current economic situation is still uneven, government officials reported Wednesday.

The sluggish economic indices may present a challenge for the Bank of Japan, which has been trying to cool off inflation, but also keep the economy strong enough to boost real wages.

The leading economic indicators index struck 108.3 in December, up from 107.8 in November, though below a preliminary December estimate of 108.9, reported the Cabinet Office.

Among positive economic indicators in December were a lower the unemployment rate, which edged down by 0.1% in November to 2.4% in December, and a modest rise in household spending, reported the Cabinet Office.

Japan's index of coincident economic indicators, which tracks factory output, employment, and retail sales among other metrics, logged at 116.4 in December, up from 115.4 in November, though lower than the preliminary estimate 116.8, added officials.

The Cabinet Office assessment of the coincident economic index was "halting to fall."

The sluggish performance of the coincident index is likely of concern the Bank of Japan.

According to the Bank of Japan, the nation's gross domestic product (GDP) in 2024 rose a scant 0.1% from 2023 on year, while the estimate is for fiscal 2025 (started April 1) is for a gain of 1%.

The central bank modestly raised interest rates in 2024, citing inflation, but has also reiterated its intention for real wages to rise, thus spurring consumption and the general economy.

In addition, last Friday Bank of Japan Governor Kazuo Ueda said the central bank may again ramp up buying of Japanese government bonds (JGBs), if yields on bonds rose too rapidly.

Yields on benchmark 10-year JGBs slipped to 1.37% after the Governors statement, through still higher the sub-1% yields JGB's from 2012 until late 2024.

Source:MT Newswires

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Alex

Economic

Commodity

Petroliam Nasional Bhd (Petronas) and Vietnam Oil and Gas Group (Petrovietnam) will expedite cooperation in Vietnam’s energy sector, encompassing upstream and downstream activities, gas, and renewable energy (RE), said Prime Minister Datuk Seri Anwar Ibrahim.

He said that with a focus on RE, both countries' oil companies are actively enhancing collaboration in power generation and grid connectivity from Vietnam to Malaysia.

“This initiative aligns with the Asean Power Grid (APG) aspiration to strengthen energy security in the Asean region through energy infrastructure integration,” he said in a post on his official Facebook page

Anwar met with Vietnam’s Prime Minister Pham Minh Chinh during a breakfast session, as part of his two-day working visit to Vietnam, which began on Tuesday.

Anwar highlighted that Malaysia is seriously investing in green energy, including wind-based energy projects in southern Vietnam, and major initiatives such as the Gentari-Petrovietnam collaboration.

"This reflects a strategic move to strengthen regional energy security and ensure a more sustainable transition," he said.

He added that Malaysia and Vietnam share strong network ties, further reinforced by the Comprehensive Strategic Partnership.

"This is not just an agreement on paper but a commitment to deepening cooperation in key sectors, namely trade, investment, green energy, digital technology, and regional security," said Anwar.

At the same time, he emphasised that Malaysia foresees significant potential in the semiconductor industry, artificial intelligence (AI) and digital economy, and that it is ready to enhance the integration of supply chains between both countries.

"Malaysian investors have played a key role in Vietnam’s economic landscape, and we want to see more joint ventures in high-impact projects," he added.

Meanwhile, trade between Malaysia and Vietnam in 2024 rose by 4.4% to US$18.4 billion (RM83.11 billion), from US$17.38 billion in the previous year, reflecting growing trade between the two Asean members.

Vietnam was Malaysia’s 11th largest trading partner in 2024, accounting for 2.9% of Malaysia’s total trade. It was also Malaysia’s 10th largest export destination with a 3.6% share, and the nation’s 13th largest import source with a 2.1% share of Malaysia’s total imports.

Source: Theedgemarkets

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Alex

Economic

Korea's central bank said Wednesday it will ease regulations on the inflow of foreign currency to allow export companies to secure foreign currency loans for domestic facility investments.

The latest measure aims to resolve imbalances in the foreign exchange market and curb pressures on the weakening won, the Bank of Korea (BOK) said. The local currency has faced mounting pressure amid domestic political turmoil and global trade uncertainties.

Previously, foreign currency loans had been limited to overseas purposes in principle, with exceptions for small and medium-sized manufacturers. Companies could only use foreign currency funds for overseas investments or the purchase of foreign goods.

With the new measure, however, export companies can now obtain foreign currency loans for domestic facility investments, on the condition that the loan amount does not exceed their export performance over the past year or their estimated performance for the current year, the BOK said.

The latest measures are part of a package of policy actions announced by the government in December to ease regulations governing the inflow of foreign currency.

Source: Koreatimes

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Warren Takunda

Economic

London stocks rose in early trade on Wednesday, with miners pacing the gains as copper prices rallied, as investors eyed results from US chip maker Nvidia.

At 0830 GMT, the FTSE 100 was up 0.6% at 8,721.03.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said that Nvidia’s results - due after the US close - are set to be a key driver of sentiment.

"Given the AI euphoria, which has swamped markets and led to the chip giant’s heady valuation, there is a keen interest in whether the seemingly insatiable demand for its products is going to continue," she said.

"The arrival of low-cost Chinese model DeepSeek rattled investors but, given Nvidia’s first mover advantage and the huge infrastructure investment plans from tech giants like Meta, it’s an indication that Nvidia’s high-end chips will remain in demand. However, investors have come to expect a lot from Nvidia given its previous record beating results so it could still be a volatile ride ahead especially if Nvidia’s misses forecasts of 72% revenue growth."

Investors were also mulling reports that Ukraine and the US have struck a minerals deal to enable Kyiv to pay back billions in military aid supplied by Washington to fight the Russian invasion.

President Volodymyr Zelenskyy was planning to travel to Washington on Friday to see his US counterpart Donald Trump to sign the agreement.

The Financial Times reported that Kyiv was ready to sign the agreement on jointly developing its mineral resources, including oil and gas, after the US dropped demands for a right to $500bn in potential revenue from the deal.

In equity markets, miners were on the front foot as copper prices rose, with Antofagasta, Glencore and Anglo American among the top performers on the FTSE 100.

Susannah Streeter said: "The threat of more potential tariffs from Trump is moving markets as investors assess the knock-on effect on goods across the global economy. Not only has the President re-committed to introducing 25% tariffs on imports from Canda and Mexico but he’s been scouting for other targets.

"Copper prices have shot up, as the metal is caught in the President’s sights. Mining stocks have helped drive the FTSE 100 higher in early trade after copper futures jumped around 4%, sparked by the President ordering an investigation into extra duties on imports. The plan would be to spark higher US production and put a dent in China’s huge share of the global market. Copper is sought after as a key component in renewable energy systems, for wind, solar power and electric vehicles for example, and prices have been steadily rising this year, after dipping back at the end of 2024."

Medical products company Convatec was the standout gainer on the top-flight index, however, as it posted a jump in full-year profit and revenue and said it expects FY25 "to be another year of strong strategic progress".

Construction and regeneration group Morgan Sindall rose as it reported a record full-year performance, hailing a "significant" contribution from the Fit Out division.

Aston Martin was also in the black as it announced plans to axe around 5% of its global workforce in a bid to cut costs, and reported a widening of its annual losses.

On the downside, Hikma Pharmaceuticals tumbled even as it posted a rise in full-year profits and revenue.

Source: Sharecast

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Owen Li

Economic

German consumer confidence continues to slide, a monthly survey said Wednesday, reflecting the enduring economic pessimism facing the country's new government.

The closely watched consumer-climate index conducted by research groups GfK and the Nuremberg Institute for Market Decisions fell to minus 24.7 in March's forecast, from minus 22.6 in February, the second decline in as many months. Economists polled by The Wall Street Journal by contrast expected it to improve slightly.

"Consumer climate has been stagnating at a low level since the middle of last year. There is still a great deal of uncertainty among consumers and a lack of planning security," said Rolf Buerkl, consumer expert at NIM.

While the survey was undertaken before the election, consumers said an uncertain economic and political situation, dissatisfaction with politics and concerns over inflation were key reasons behind expectations of worse income prospects and willingness to spend money.

"A fast formation of a new federal government after the parliamentary elections and the rapid approval of this year's budget would give both companies and private households more certainty when it comes to planning," Buerkl added.

Opposition leader Friedrich Merz won Sunday's election, likely ousting incumbent Olaf Scholz as chancellor, but will need a coalition partner to govern. He has said he hopes to form a government by April.

But economic prospects remain weak after two-straight years of contracting GDP. Bundesbank President Joachim Nagel said Tuesday that he couldn't rule out a third consecutive year of no growth in 2025.