Menu

Search

  |   Technicals

Menu

  |   Technicals

Search

FxWirePro: GBP/USD advance after softer US inflation dims Fed rate hike bets

• GBP/USD strengthened on Tuesday    after softer-than-expected U.S. consumer inflation data weighed on the dollar.

• Economists expect the U.S. Consumer Price Index to rise 3.8% year-on-year in June, remaining elevated, according to a Reuters survey ahead of Tuesday's Labor Department report.

• The release of weaker U.S. CPI figures shifted market sentiment, reducing expectations that the Fed could raise interest rates as soon as its July 29 meeting.

• Financial markets are pricing an 83.4% chance the Fed will keep interest rates unchanged in July, up from 58.3% on Monday, while still expecting at least one 25-basis-point rate hike before year-end.

•   Immediate resistance is located at 1.3391(50%fib), any close above will push the pair towards 1.3442(Daily high)

•  Strong support is seen at 1.3343(Daily low) and break below could take the pair towards 1.3293(38.2%fib).

  Recommendation: Good to sell  around 1.3400, with stop loss of 1.3470 and target price of 1.3330

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.