GBPUSD continues the bear rally
Cable continued plunging, keeping the bearish rhetoric in place for the past three weeks. The pair has fallen over 3% from its valuation against a robust dollar. With the Bank of England cutting interest rates for the first time since 2020, sentiment shifted as the thought of lower borrowing costs heaped pressure on the pound. With the Fed holding firm, for now, cable will be seen as an unattractive bet for most investors for the time being. 1.2800 is the threshold, and 1.2650 is the closest support.
UKOIL recovers after unexpected stockpile draw
Oil jumped over 2% as prices bounced back from multi-month lows, with data showing a higher-than-expected draw in stockpiles. This data brushed off worries about weak oil demand in China. Since January, Brent slumped to its lowest level as a global stock market rout deepened amid recession looming concerns following recent weak jobs data. With heightened tensions in the Middle East, the black gold could be in for a rocky rise until the end of the year. An uptick in optimism could trigger a rally towards 80.00, with 75.50 a fresh support.
SPX 500 attempts a pullback
The US stock market looks to cover the recent gaps, but some economists are concerned that the correction is far from over. With Nvidia, one of the most influential stocks, failing to make any gains, this weighed heavy on the index. As recession looming fears continue over the economy, with NFP numbers failing to meet expectations, will we see the Fed act sooner on trying to calm the choppy waters? The index is heading to 5250 with 5000 as the first support.
