GBP/USD tumbles to one-week lows under 1.3800 as the US dollar strengthens
|- US dollar soars supported by US economic data.
- Pound losses momentum amid risk aversion, turns negative even against EUR.
- GBP/USD heads for lowest daily close since late August.
The GBP/USD broke below 1.3800 and tumbled to 1.3763, reaching the lowest level since September 9. It remains near the lows, under pressure, amid a rally of the greenback across the board.
Data boosts US dollar ahead of FOMC meeting
Economic data from the US released on Thursday came in above expectations, particularly the Philly Fed and retail sales. Those numbers triggered a rally of the dollar and a sell-off in Treasuries. The 10-year yield jumped to 1.35% before easing to 1.32%.
Ahead of next week’s FOMC meeting, the greenback rose versus all its rivals. Prior to the economic reports, the pound was among the top performers. However, the decline in equity prices after the beginning of the American session weighed on sterling. The EUR/GBP rebounded from the key 0.8500 area, back toward 0.8550, weakening further the pound.
The GBP/USD could post the lowest daily close since late August, under the 20-day simple moving average. The pair is breaking a consolidation range. The next support below 1.3760 might be seen around September lows at 1.3720/25.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.