GBP/USD holds weaker near session lows post-US data
|The GBP/USD pair remained heavily offered and had a rather muted reaction to today's US macroeconomic releases.
The pair held on to its weakness near 50-day SMA, around the 1.3135 region, after data released from the US showed initial weekly jobless claims fell more than expected to 243K during the week ended Oct. 6.
Adding to this, headline PPI rose 0.4% m-o-m in September, with the yearly rate ticking higher to 2.6% (2.5% expected). Meanwhile, core PPI, a measure that excludes food and energy prices also bettered expectations and recorded 0.4% m-o-m growth and lifted the yearly rate to 2.2% (2.0% expected).
Against the backdrop of latest Brexit jitters, today's slightly better-than-expected US economic data provided an additional boost to the US Dollar's modest recovery move from 2-week lows and did little to provide any immediate respite for the major.
Investors now look forward to speeches by the Fed Governors Powell and Brainard, but tomorrow's US consumer inflation figures (CPI) and monthly retail sales data are likely to attract more market attention.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet writes: "The 4 hours chart shows that the price broke below its 20 SMA, whilst technical indicators accelerated south, entering bearish territory, in line with further slides ahead, moreover on a break below 1.3115."
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