12 Nov 2013
GBP/USD deflates to session lows
FXstreet.com (Edinburgh) -The sterling is now losing the grip, dragging the GBP/USD to challenge intraday lows around 1.5950 after briefly piercing the 1.5990 level overnight.
GBP/USD focus on CPI data
Key session for the pound, as inflation figures for the month of October are due, ahead of tomorrow’s labour market report and the crucial BoE’s Quarterly Inflation Report. Prior surveys expect the headline CPI to rise at an annual pace of 2.5% (2.7% prev.) and the Core reading to expand 2.0% YoY (2.2% prev.). According to Annette Beacher, Strategist at TD Securities, “While this would leave inflation just a hair below the BoE’s Q3 forecast, we think this is likely to be the low point in inflation, with utilities price hikes set to start showing up in the November data. We expect to see inflation rise to just below 3.0% by Q1 2014, although it should remain well below the uncomfortably elevated levels that we saw through 2010-2012”.
GBP/USD key levels
As of writing the pair is losing 0.16% at 1.5965 with the initial support at 1.5957 (low Nov.8) ahead of 1.5949 (low Nov.5) and finally 1.5904 (low Nov.4). On the upside, a break above 1.6072 (MA30d) would open the door to 1.6105 (high Nov.8) and then 1.6115 (high Nov.7).
GBP/USD focus on CPI data
Key session for the pound, as inflation figures for the month of October are due, ahead of tomorrow’s labour market report and the crucial BoE’s Quarterly Inflation Report. Prior surveys expect the headline CPI to rise at an annual pace of 2.5% (2.7% prev.) and the Core reading to expand 2.0% YoY (2.2% prev.). According to Annette Beacher, Strategist at TD Securities, “While this would leave inflation just a hair below the BoE’s Q3 forecast, we think this is likely to be the low point in inflation, with utilities price hikes set to start showing up in the November data. We expect to see inflation rise to just below 3.0% by Q1 2014, although it should remain well below the uncomfortably elevated levels that we saw through 2010-2012”.
GBP/USD key levels
As of writing the pair is losing 0.16% at 1.5965 with the initial support at 1.5957 (low Nov.8) ahead of 1.5949 (low Nov.5) and finally 1.5904 (low Nov.4). On the upside, a break above 1.6072 (MA30d) would open the door to 1.6105 (high Nov.8) and then 1.6115 (high Nov.7).