FXstreet.com (Barcelona) - The Pound has jumped in the US opening bell against the Dollar from 1.5970, MA55 hourly chart level, to hit 1.6005 as fresh intra-day high. Currently the pair is trading around 1.5990/1.6000, 0.05% above today's opening price action at 1.5985.
According to the Wells Fargo Research Team, the Dollar's fall is a correction to its strength seen in December: The dollar has slipped at the start of the new week, though we are cautious about reading too much into light, holiday-impacted trading. Two factors appear to be in play for today's FX moves. First, the greenback's fall in part is a correction to the strength seen through much of the December month. Second, global equity markets are generally firmer, and that is being mirrored in gains in G10 and emerging currencies, along with weakness in the Japanese yen.
TJ Marta, analyst at Marta on the Markets, comments: Holding at the low end of the range. Cable (1.6125) is down overnight but is still managing to hold in the bottom of the 1.60-1.68 range that has held for most of the time since June. Technical support lies at 1.6053 (Dec18 low) and then 1.6000 (psychological). Resistance lies at 1.6411 (Dec 16 high), 1.6878 (Nov16 high) and 1.7043 (Aug high). The strongest correlates over the past two months for GBP/USD have been the DXY (negative), EUR/USD (positive), crude oil (positive), and the S&P (positive). The correlation with the 2yr spread is rising in significance.