GBPUSD marches towards two-month high at 1.1740 amid euphoric market mood, UK GDP eyed


Share:
  • GBPUSD is advancing towards 1.1738 as a decline in US inflation has trimmed hawkish Fed bets.
  • Bloodbath in US Treasury yields and cheerful market mood have underpinned risk-sensitive currencies.
  • Going forward, the UK GDP data will be of utmost importance.

The GBPUSD pair is advancing firmly to kiss the two-month high at 1.1738 in the early Tokyo session. A significant drop in the US inflationary pressures has infused an adrenaline rush into risk-sensitive assets. Euphoria in the market mood has improved the risk appetite of investors vigorously.

S&P500 soared like there is no tomorrow as mounting price pressures in the US economy have been hammered. A meaningful decline in price growth has trimmed downside risks to economic projections and the risk of a recession situation. Earlier, economists were expecting that continuous policy tightening measures by the Federal Reserve (Fed) would shift the US economy into a recession. And, when the US sneezes, developing countries catch a cold.

Meanwhile, the US dollar index (DXY) nose-dived to 107.80 as every chance of a risk-off impulse in the market was kicked-off. The returns on US government bonds remained a major victim as long-term bonds’ yields have witnessed a bloodbath and have dropped to 3.8%.

The headline Consumer Price Index (CPI) has dropped to 7.7% vs. the projections of 8.0% and the core CPI declined to 6.3% against the expectations of 6.5%. This has paused chatters of a higher terminal rate by the Fed as price pressures have displayed signs of significant exhaustion. Also, rumors of recession and bleak economic outlook may dim as Fed chair Jerome Powell won’t continue the 75 basis points (bps) rate hike cycle.

On Friday, US markets will remain closed on account of Veterans Day.

Talking on the UK front, investors are focusing on the UK Gross Domestic Product (GDP) data, which will release on Friday. The GDP data on an annual basis is seen lower at 2.1% vs. the prior release of 4.4%. And, the quarterly regime is expected to display negative growth by 0.5% against an expansion of 0.2%.

GBP/USD

Overview
Today last price 1.1721
Today Daily Change 0.0373
Today Daily Change % 3.29
Today daily open 1.1348
 
Trends
Daily SMA20 1.1388
Daily SMA50 1.1327
Daily SMA100 1.167
Daily SMA200 1.2284
 
Levels
Previous Daily High 1.1567
Previous Daily Low 1.1334
Previous Weekly High 1.1614
Previous Weekly Low 1.1147
Previous Monthly High 1.1646
Previous Monthly Low 1.0924
Daily Fibonacci 38.2% 1.1423
Daily Fibonacci 61.8% 1.1478
Daily Pivot Point S1 1.1266
Daily Pivot Point S2 1.1183
Daily Pivot Point S3 1.1033
Daily Pivot Point R1 1.1499
Daily Pivot Point R2 1.165
Daily Pivot Point R3 1.1732

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD struggles near 1.0750, focus on ECB-speak, Powell

EUR/USD struggles near 1.0750, focus on ECB-speak, Powell

EUR/USD is consolidating gains near 1.0750 in the early European morning. The main currency pair is capitalizing on a broad-based US Dollar retreat, in the face of sluggish Treasury bond yields and a mild risk-on market profile. ECB commentary and Powell's speech eyed. 

EUR/USD News

GBP/USD clings to gains around 1.2050 ahead of Powell

GBP/USD clings to gains around 1.2050 ahead of Powell

GBP/USD is trading close to 1.2050, preserving gains ahead of the London Open. The upbeat market mood and renewed Brexit optimism boes well for the Pound Sterling while the US Dollar retreats with Treasury yields ahead of Fed Chair Powell's speech. 

GBP/USD News

Gold encounters barricades around $1,875 as USD Index attempts recovery

Gold encounters barricades around $1,875 as USD Index attempts recovery

Gold price (XAU/USD) is facing pressures in recovery extension above the critical resistance of $1,875.00 in the Asian session. The precious metal has sensed selling interest as the US Dollar Index (DXY) has attempted a recovery after correcting to near 103.10.

Gold News

Will Bitcoin price test $20,000 again?

Will Bitcoin price test $20,000 again?

Bitcoin price shows clear signs of distribution occurring on the four-hour chart, which indicates the possibility of a trend reversal. Moreover, BTC has been consolidating for more than two weeks with no direction in sight.

Read more

Central banks, markets and the economy: Three times wrongfooted

Central banks, markets and the economy: Three times wrongfooted

In the US, financial conditions have eased in recent months and weighed on the effectiveness of the Fed’s policy tightening. Jerome Powell recently gave the impression of not being too concerned, so markets rallied.

Read more

Forex MAJORS

Cryptocurrencies

Signatures