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GBP/USD Holds Below $1.3900, Awaits UK Inflation at 0700GMT

GBP
MNI (London)
  • Stretched recovery to $1.3952 in Asian trade Tuesday but settled below $1.3940 during the European morning as market awaited the US market return, following their long weekend.
  • The sharp move higher in UST yields provided a general boost for the USD, though GBP react trailed EUR, allowed EUR/GBP to make a show back under Gbp0.8700 into the 1600GMT fix which in turn saw GBP/USD bounce off its early NY low of $1.3869 low to $1.3934.
  • Post fix saw GBP/USD settle between $1.3900/20, whilst EUR/GBP settled back above Gbp0.8700.
  • UST yields edged higher in early Asia and provided the weight to take GBP/USD back below $1.39, traded down to $1.3862 ($1.3861 23.6% $1.3567-1.3952) before it edged back to $1.3900, settling basically between $1.3880/1.3900 through to the Europe open.
  • UK CPI released at 0700GMT(median -0.4%mm, 0.5%yy; Core 1.2%yy) provides the early data interest.
  • US Retail Sales and PPI at 1330GMT. US IP/Cap.Ut. at 1415GMT.
  • BOE Ramsden speaks at 1600GMT. FOMC Minutes 1900GMT.
  • Support $1.3862/61 ahead of $1.3840/20. Resistance $1.3900/10, $1.3920/30 ahead of $1.3952.
  • MNI Techs: GBPUSD maintains a firmer tone and extended gains again Tuesday reaching a high of $1.3952. Continued gains reinforce bullish conditions as the rising sequence of higher highs and higher lows is maintained. Moving average studies are in a bull mode too and also reinforce current conditions. The focus is on $1.3998 next, Apr 26, 2018 high. On the downside, firm support lies at $1.3776, Feb 12 low. A break would dent the current sentiment.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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