GBP/USD breaches 1.3030 post-UK CPI, fresh 2018 lows

Cable breaks below the key 1.3040 area on UK CPI
The pair trades in levels last seen in September 2017 near 1.3020.
UK’s CPI came in flat MoM in June, up 2.4% YoY.

Pablo Piovano FXStreet

The British Pound met further selling pressure on Wednesday and is now dragging GBP/USD to print fresh 2018 lows in the 1.3030/20 band, levels last traded in September 2017.

GBP/USD weaker on UK data

Cable tumbled further after UK’s inflation figures tracked by the CPI came in below expectations for the month of June. In fact headline consumer prices rose at an annualized 2.4% over the last twelve months and came in flat on a monthly basis.

In addition, prices stripping food and energy costs also rose below estimates 1.9% YoY.

GBP is also deriving further downside pressure as the recently published inflation figures could pour cold water over expectations of a rate hike by the Bank of England at its August meeting.

In the meantime, the pair in trading in fresh 10-month lows in the 1.3030/20 band, down for the second straight session and opening the door for a potential test of the psychological support at 1.3000 the figure.

GBP/USD levels to consider

As of writing, the pair is losing 0.66% at 1.3024 and a break below 1.3011 (low Jul.18) would open the door to 1.3000 (psychological level) and finally 1.2771 (monthly low Aug.25 2017). On the flip side, the next hurdle lines up at 1.3201 (21-day sma) followed by 1.3207 (10-day sma) and then 1.3297 (high Jul.17).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold hangs near one-week low; looks to FOMC Minutes for fresh impetus

Gold is consolidating just above the $4,850 level, having touched a one-week low on Tuesday, amid mixed cues. Signs of progress in US–Iran talks dent demand for the traditional safe-haven bullion. Meanwhile, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders also seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.