After both the US and the UK reported higher-than-expected price increases, the idea that inflation is ubiquitous has gained traction. However, on both sides of the Atlantic, transitory factors are boosting the increases, and what counts is what policymakers think about it.
The most recent GBP/USD move is to the upside, following the UK’s announcement of a 2.5 percent increase in the Consumer Price Index, which was greater than predicted. Second-hand automobiles, footwear, apparel, and restaurant costs all increased as a result of the reopening. In June, core CPI increased by 2.3 percent year over year, beating expectations. Continue reading…
Due to the US CPI announcement on Tuesday, the GBP/USD traded with a lot of volatility. On Wednesday, however, the rate had recovered and appeared to be on track for another test of the resistance zone above 1.3900.
If the rate breaks through the 1.3900 resistance level, the GBP/USD will face opposition at the 1.3950 level, followed by the weekly R1 simple pivot point at 1.3963. Continue reading…
During the early North American session, intraday USD selling gathered up steam, pushing the GBP/USD pair to new daily highs, bringing it closer to the 1.3900 mark in the previous hour.
On Wednesday, the pair got some aggressive bids near 1.3800 and has already recovered its weekly losses from the previous two trading sessions. Following the release of higher-than-expected UK consumer inflation numbers, the British pound found some support. The GBP/USD pair’s big intraday bullish rise was aided by this, as well as the emergence of some substantial selling surrounding the US dollar. Continue reading…/n
