- Hotter-than-expected US headline and core CPI help ease the USD bearish pressure.
- Expectations of a 50 bps rate cut by the Fed might cap any attempted USD recovery.
The GBP/USD pair maintained its strong bid tone through the early North-American session, albeit retreated few pips from weekly tops post-US CPI.
The bearish pressure surrounding the US Dollar - triggered by the Fed Chair Jerome Powell's dovish remarks, eased a bit following the release of slightly stronger-than-expected US consumer inflation figures for June.
In fact, the consumer inflation - as measured by headline CPI, ticked higher by 0.1% during the reported period as compared to consensus estimates pointing to a flat reading expected, while the yearly rate held steady at 1.6%.
Meanwhile, the core CPI - excluding food and energy costs, also bettered market expectations - rising 0.3% and 2.1% on monthly and yearly basis respectively and provided a much-needed respite to the USD bulls.
However, the fact that market participants have already started pricing in a 50 bps rate cut by the Fed later this July kept a lid on any strong USD recovery and should help limit any meaningful pullback, at least for now.
Technical levels to watch
|Today last price||1.2564|
|Today Daily Change||0.0065|
|Today Daily Change %||0.52|
|Today daily open||1.2499|
|Previous Daily High||1.2522|
|Previous Daily Low||1.2444|
|Previous Weekly High||1.2706|
|Previous Weekly Low||1.2481|
|Previous Monthly High||1.2784|
|Previous Monthly Low||1.2506|
|Daily Fibonacci 38.2%||1.2492|
|Daily Fibonacci 61.8%||1.2474|
|Daily Pivot Point S1||1.2455|
|Daily Pivot Point S2||1.241|
|Daily Pivot Point S3||1.2377|
|Daily Pivot Point R1||1.2533|
|Daily Pivot Point R2||1.2567|
|Daily Pivot Point R3||1.2611|
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