GBP/USD prints fresh highs on Bank of England expectations


  • GBP/USD bulls stampede on BoE rate expectations.
  • US dollar drifts lower following yesterday's spike to fresh cycle highs.  

At 1.3490, GBP/USD is trading near to the highs of the day that came in just shy of 1.3495. The pair has moved from a low of 1.3396 and climbed to a one-week high after data showed UK inflation surged to a 10-year high last month.

The pound is firmer across the board due to the expectations of an interest rate hike as early as next month following a week, so far, of better than expected data. On Tuesday, for instance, UK data showed Britain's job market withstood the end of the government's furlough scheme.

Subsequently, the Bank of England is expected to join the Reserve Bank of New Zealand as one of the first major central banks to raise rates since the coronavirus pandemic hit the global economy. The markets are now pricing a 60% chance that the BoE will raise rates at a December 16 meeting.

US dollar drifts below 16-month highs

Meanwhile, the US dollar has drifted lower from a new 16-month high that was printed on Tuesday as markets position for rate increases from the Federal Reserve that is now seen hiking rates by as early as mid-2022. The dollar index, DXY, which measures the currency against a basket of six rivals, is down around 0.13% at the time of writing, trading at 95.788 within the day's range of between 95.734 and 96.241. Yesterday's high was 96.266, the best level marked since mid-July 2020.

GBP/USD

Overview
Today last price 1.3491
Today Daily Change 0.0069
Today Daily Change % 0.51
Today daily open 1.3422
 
Trends
Daily SMA20 1.3611
Daily SMA50 1.3651
Daily SMA100 1.3729
Daily SMA200 1.384
 
Levels
Previous Daily High 1.3473
Previous Daily Low 1.3405
Previous Weekly High 1.3607
Previous Weekly Low 1.3353
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3447
Daily Fibonacci 61.8% 1.3431
Daily Pivot Point S1 1.3394
Daily Pivot Point S2 1.3366
Daily Pivot Point S3 1.3327
Daily Pivot Point R1 1.3462
Daily Pivot Point R2 1.3501
Daily Pivot Point R3 1.3529

 

 

 

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