- GBP/USD pauses the upside momentum in the early European trading hours.
- Higher US T-yields underpin the demand for the US dollar.
- Sterling holds ground amid mixed economic data, Brexit optimism, and hawkish BOE.
The GBP/USD pair remains muted on Thursday. The pair consolidates gains after testing the intraday’s high near 1.3672. At the time of writing, GBP/USD is trading at 1.3664, up 0.03% for the day.
The spot recorded nearly 90-pips movement in the previous session on a broad-based USD selling. The greenback retreated from its yearly highs around 94.50 post-US Consumer Price Index (CPI) readings, which came in higher at 5.4% in September, beating expectations. Furthermore, investors geared up for the Fed’s tapering as soon as November, according to the minutes of the September FOMC meetings.
At the moment, the US benchmark 10-year Treasury bond yields rebound near 1.55%, helping the greenback to hold 94.00 amid risk-on mood. It is worth noting that S&P 500 Futures is trading at 4,370, up 0.34% for the day.
On the other hand, the British pound gains were limited after the data showed that the UK’s economy grew 0.4% in August amid expectations the Bank of England (BOE) will be hiking interest rates as soon as December.
In addition to that, the UK’s Brexit Minister David Frost kept a softer stance at the European Union’s (EU) proposal to fix post-Brexit disruption in Northern Ireland, as the two sides prepared for fresh negotiations.
As for now, traders keep their focus on the Bank of England (BOE) Credit Condition Survey and the US Initial Jobless Claims to gauge market sentiment.
GBP/USD technical levels
|Today last price||1.3661|
|Today Daily Change||0.0001|
|Today Daily Change %||0.01|
|Today daily open||1.366|
|Previous Daily High||1.3665|
|Previous Daily Low||1.3576|
|Previous Weekly High||1.3659|
|Previous Weekly Low||1.3532|
|Previous Monthly High||1.3913|
|Previous Monthly Low||1.3412|
|Daily Fibonacci 38.2%||1.3631|
|Daily Fibonacci 61.8%||1.361|
|Daily Pivot Point S1||1.3602|
|Daily Pivot Point S2||1.3544|
|Daily Pivot Point S3||1.3513|
|Daily Pivot Point R1||1.3692|
|Daily Pivot Point R2||1.3723|
|Daily Pivot Point R3||1.3781|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.