Industrial Production

GBP/USD traded near 1.3236 on Monday as higher crude oil prices, rising bond yields and upcoming macro data kept sterling traders cautious. Technical traders are watching 1.3150 and 1.3300 as near term levels while the pair remains caught between bearish momentum and early reversal signals.

GBP/USD is trading near a crucial resistance area after weak US jobs figures pressured the dollar and lifted sterling momentum. Traders are watching US inflation and UK growth data for fresh clues on the Federal Reserve and Bank of England policy paths.

EUR/USD has recovered despite weak eurozone growth signals, supported by widening expectations that the ECB may stay more hawkish than the Federal Reserve. The next major test is whether higher European gas prices reinforce inflation fears or revive recession concerns.