Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
May 17 - 11:55 AM

GBP/USD - COMMENT-Transfixed By Looming Inflation Test, Sterling Holds Familiar Ground

By Paul Spirgel  —  May 17 - 10:10 AM

GBP/USD hovered near flat in Friday trading, capped near Thursday's 1.27 high, as traders cogitate over recent softer U.S. CPI and hot import prices while preparing for key UK inflation data next Wednesday that could decide whether the BoE pivots to a lower policy path in June, presenting a challenge for sterling.

Sterling held most of Wednesday's U.S. CPI-related gains, which had lifted GBP/USD to its 5-week high at 1.27, though traders are wary of testing the April 9-10 peak at 1.2709 after the hot U.S. import price data tempered disinflation euphoria.

Adding to resistance for GBP/USD were this week's dovish comments by MPC member Megan Greene, which added to perceptions of a shift toward softer BoE policy following its recent policy vote.

Inflation data that supports such a shift could send GBP/USD to test minor support at the 100-DMA by 1.2632 and the 55-DMA at 1.2603 on its way down Wednesday's long candle to 1.2585 and perhaps the May 14 low at 1.2510.

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2024 eFXdata · All Rights Reserved
!