GBP/USD remains sidelined above 1.2930 mark, cooling inflation in the UK


  • GBP/USD remains sidelined around 1.2935 after diving to a weekly low below the 1.2900 area.
  • UK’s June CPI revealed an easing in inflationary pressures.
  • The US Dollar rebounds to five-day highs despite disappointing US housing data.

The GBP/USD pair licks its wounds around 1.2935 in the early Asian session after diving to a weekly low near the 1.2870 region. The major declines after the publication of the softer UK Consumer Price Index.

The Office for National Statistics in the United Kingdom reported that the headline Consumer Price Index (CPI) MoM increased by 0.1% in June, below the 0.4% expected and the 0.9% increase in May. Annually, headline CPI fell to 7.9%, falling short of the expectation of 8.2% and the 8.7% increase in May. The core CPI figure, excluding volatile food and oil prices, fell to 6.9%, against the market consensus of 7.1%. This softer inflation data could help the Bank of England (BoE) to hike rates towards 25 basis points (bps) rather than 50 bps in the next policy meeting on August 3.

Across the pond, US Housing Starts fell 8% MoM in June, following a 15.7% gain (revised from +21.7%) in May. This number was below the market consensus of a 7.2% increase. Meanwhile, Building permits declined 3.7% in June from 5.6% prior (revised).

Although the US Dollar rebounds to five-day highs and hovered around 100.25 on Thursday despite the disappointing US housing data. Market players anticipate that the Federal Reserve (Fed) is nearing the end of its policy tightening cycle and will maintain interest rates following the widely expected 25 basis points (bps) in the July meeting.

Moving on, investors will watch the US Existing Home Sales and the UK Retail Sales for fresh impetus. Next week, the focus will shift to the Flash Manufacturing Purchasing Managers Index (PMI) and Flash Services PMI from the US and UK. These figures would significantly impact the pair and help determine the next direction for the GBP/USD pair.

 

GBP/USD

Overview
Today last price 1.2937
Today Daily Change -0.0099
Today Daily Change % -0.76
Today daily open 1.3036
 
Trends
Daily SMA20 1.2823
Daily SMA50 1.2637
Daily SMA100 1.2481
Daily SMA200 1.2221
 
Levels
Previous Daily High 1.3126
Previous Daily Low 1.3028
Previous Weekly High 1.3142
Previous Weekly Low 1.275
Previous Monthly High 1.2848
Previous Monthly Low 1.2369
Daily Fibonacci 38.2% 1.3066
Daily Fibonacci 61.8% 1.3089
Daily Pivot Point S1 1.3001
Daily Pivot Point S2 1.2966
Daily Pivot Point S3 1.2903
Daily Pivot Point R1 1.3099
Daily Pivot Point R2 1.3161
Daily Pivot Point R3 1.3196

 

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