19 Aug 2015
GBP/USD back to square one after US CPI volatility
FXStreet (Córdoba) - The greenback saw a bout of selling in the minutes that followed the US consumer price index release, but quickly reversed losses to trade at pre-data levels.
GBP/USD spiked to the 1.5690 area as immediate reaction, but then turned south and slid to a fresh daily low of 1.5655 as investors digested inflation data.
CPI and the Fed
The Federal Reserve is looking for inflation to increase gradually and some officials have indicated the bank could raise rates as soon as September despite inflation remains below the 2.0% target.
Later on Wednesday, investors will be closely watching FOMC minutes, for guidance on the probability the Fed will raise rates next month.
GBP/USD technical levels
At time of writing, GBP/USD is trading at 1.5660, virtually unchanged on the day. On the downside, next supports are seen at 1.5645 (Aug 19 low) and 1.5611 (50-day SMA). On the flip side, resistances could be found at 1.5695/1.5700 (Aug 19 high/psychological level) and 1.5715 (Aug 18 high).
GBP/USD spiked to the 1.5690 area as immediate reaction, but then turned south and slid to a fresh daily low of 1.5655 as investors digested inflation data.
CPI and the Fed
The Federal Reserve is looking for inflation to increase gradually and some officials have indicated the bank could raise rates as soon as September despite inflation remains below the 2.0% target.
Later on Wednesday, investors will be closely watching FOMC minutes, for guidance on the probability the Fed will raise rates next month.
GBP/USD technical levels
At time of writing, GBP/USD is trading at 1.5660, virtually unchanged on the day. On the downside, next supports are seen at 1.5645 (Aug 19 low) and 1.5611 (50-day SMA). On the flip side, resistances could be found at 1.5695/1.5700 (Aug 19 high/psychological level) and 1.5715 (Aug 18 high).