15 Dec 2015
GBP/USD little changed after US data
FXStreet (Mumbai) - The GBP/USD hardly batted an eye, even though the data in the US showed the cost of living ticked higher in November.
USD unimpressed
The inflation represented by CPI beat estimates to print at 0.5% y/y in November. The core inflation also ticked higher as expected. However, the USD is unimpressed and so are the related markets. The 2-year treasury yield, which represents short-term rate hike expectations, ticked higher by more than one basis, but currency markets stay quiet.
With no major data due now, the financial markets may turn comatose as we are just 24-hours away from the FOMC rate decision. The markets are anticipating a liftoff tomorrow.
GBP/USD Technical Levels
The pair faces immediate resistance at 1.5185 (23.6% of July 2014-April 2015 plunge), ahead of the major hurdle at 1.5235 (50-DMA) – 1.5248 (50% of Apr-Jun rally). On the other hand, support is seen at 1.5113 (23.6% of 1.5819-1.4895), under which the pair could drop to 1.5027 (Nov 6 low).
USD unimpressed
The inflation represented by CPI beat estimates to print at 0.5% y/y in November. The core inflation also ticked higher as expected. However, the USD is unimpressed and so are the related markets. The 2-year treasury yield, which represents short-term rate hike expectations, ticked higher by more than one basis, but currency markets stay quiet.
With no major data due now, the financial markets may turn comatose as we are just 24-hours away from the FOMC rate decision. The markets are anticipating a liftoff tomorrow.
GBP/USD Technical Levels
The pair faces immediate resistance at 1.5185 (23.6% of July 2014-April 2015 plunge), ahead of the major hurdle at 1.5235 (50-DMA) – 1.5248 (50% of Apr-Jun rally). On the other hand, support is seen at 1.5113 (23.6% of 1.5819-1.4895), under which the pair could drop to 1.5027 (Nov 6 low).