UOB strategists Quek Ser Leang and Lee Sue Ann report that GBP/USD surged as Sterling outperformed major peers, though short-term conditions are now overbought. Intraday, they expect consolidation within a tight band, but the 1–3 week view still allows for further gains toward higher resistance, with downside invalidation only on a break of revised strong support levels.
Societe Generale’s Kit Juckes discusses USD/CAD in light of revised IMF growth forecasts, highlighting weaker prospects for Canada versus the US. He notes the widening North American growth gap and the role of two-year rate differentials in guiding the Canadian Dollar. Historical ranges suggest USD/CAD is likely to stay broadly confined, with significant downside needing improved Canadian fundamentals.
Danske Research Team notes US equities ended modestly higher, with the S&P 500 up 0.3%, Nasdaq flat and Russell 2000 outperforming. Sector performance showed a defensive bias, led by healthcare, while tech, industrials and communication services lagged on concerns about the AI investment cycle. The VIX fell toward 17, suggesting easing market anxiety, though strong AI-related earnings later challenged this rotation.