- US dollar recovers ground after falling sharply on US data.
- Inflation decelerated in August in the US but remains elevated.
- GBP/USD fails to hold above 1.3900, back into recent range.
The GBP/USD was unable to hold above key technical levels and pulled back amid a recovery of the US dollar. Cable peaked after the beginning of the American session at 1.3913, the highest level in a month and then weakened. It erased most of its daily gains and it is hovering slightly below 1.3850.
US inflation slows
Data released earlier on Tuesdays showed an improvement in the UK Job market. The latest report was US CPI for August that showed an increase of 0.3% in the headline, below the 0.4% expected.
“US consumer price inflation slowed in August, reflecting a moderation in the re-opening hotspots of the economy, where prices had been surging. Elsewhere, inflation pressures are broadening out while elevated inflation expectations risk keeping CPI well above target for much longer than the Federal Reserve currently anticipates”, explained analysts at ING.
The US dollar initially dropped across the board amid a sharp decline in US yields but then recovered ground, erasing CPI losses, even as yield remained in negative. The 10-year yield reached 1.35% and then dropped to 1.26%. The move weighed on the dollar and boosted gold.
|Today last price||1.3849|
|Today Daily Change||0.0009|
|Today Daily Change %||0.07|
|Today daily open||1.384|
|Previous Daily High||1.3851|
|Previous Daily Low||1.3797|
|Previous Weekly High||1.3889|
|Previous Weekly Low||1.3726|
|Previous Monthly High||1.3958|
|Previous Monthly Low||1.3602|
|Daily Fibonacci 38.2%||1.3831|
|Daily Fibonacci 61.8%||1.3818|
|Daily Pivot Point S1||1.3808|
|Daily Pivot Point S2||1.3776|
|Daily Pivot Point S3||1.3754|
|Daily Pivot Point R1||1.3862|
|Daily Pivot Point R2||1.3884|
|Daily Pivot Point R3||1.3916|
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