- UK growth positive in July, but below expectations.
- Attention turns to US inflation numbers.
- GBP/USD up for the second day in a row, tests the 20-day SMA.
The GBP/USD is rising on Monday and during the American session climbed to 1.1709, reaching the highest level since August 30. Cable remains near the top, holding onto daily gains and a bullish bias in the very near term.
The pound continues to recover from multi-year lows against the US dollar. It is testing the 20-day Simple Moving Average and a consolidation above could open the doors to a more sustainable recovery.
Weak dollar ahead of CPIs
The US dollar is falling across the board on Monday hit by an improvement in risk sentiment and steady US yields. The DXY is falling by 0.75%, hovering around 0108.15. The US 10-year yield stands at 3.28% and the 2*-year at 3.52%. The Dow Jones rises by 0.90% and the S&P 1%, adding to last week’s gains.
On Tuesday, August US CPI numbers are due. A 0.1% decline is expected on the monthly reading and a slide in the annual rate from 8.5% to 8.1%. The report will be relevant for Federal Reserve rate hike expectations ahead of the FOMC meeting next week. The Bank of England will also have its meeting next week (postponed due the Queen’s death).
In the UK, July growth data showed a recovery from the 0.6% June contraction with a 0.2% expansion. The figure was below expectations. On Tuesday labor data is due and the CPI on Wednesday.
|Today last price||1.17|
|Today Daily Change||0.0109|
|Today Daily Change %||0.94|
|Today daily open||1.1591|
|Previous Daily High||1.1648|
|Previous Daily Low||1.15|
|Previous Weekly High||1.1648|
|Previous Weekly Low||1.1405|
|Previous Monthly High||1.2294|
|Previous Monthly Low||1.1599|
|Daily Fibonacci 38.2%||1.1591|
|Daily Fibonacci 61.8%||1.1556|
|Daily Pivot Point S1||1.1511|
|Daily Pivot Point S2||1.1431|
|Daily Pivot Point S3||1.1362|
|Daily Pivot Point R1||1.166|
|Daily Pivot Point R2||1.1728|
|Daily Pivot Point R3||1.1809|
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.