USD and GBP Shine, OPEC+ Meets to Decide on Output

Yields Rise Again, Pound Rallies, Oil Traders Await the OPEC+ Decision

The US dollar traded higher against all but one of the other G10 currencies on Wednesday and during the Asian session Thursday. It gained the most versus CHF, SEK, and NZD, while it was found virtually unchanged against GBP.

GBP/JPY — Technical Outlook

GBP/JPY continues its journey north, while currently trading above a short-term tentative upside support line taken from the low of February 26th. Even though the pair seems to be showing willingness to move higher, we would prefer to wait for a pop above the 149.70 hurdle first, which is yesterday’s high. Until then, we will remain somewhat positive with the near-term outlook.

Brent Oil — Technical Outlook

After a recent decline, Brent oil managed to reverse back up again and make its way above all of its EMAs on our 4-hour chart. In addition to that, the commodity is currently trading above a short-term tentative upside support line taken from the low of February 1st. Because the price is still trading above that upside line, the trend remains to the upside. But because Brent oil was rising steeply from the beginning of November 2020, and we still have not seen a strong correction lower, we will take a cautiously-bullish approach, at least for now.

As for the Rest of Today’s Events

During the European morning, we get the UK construction PMI for February, which is expected to have risen to 51.0 from 49.2, as well as Eurozone’s retail sales for January, which are forecast to have slid 1.1% mom after rising 2.0% in December.

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