GBP/USD Holds Above 1.3479 as US CPI Tests 48.1% Fed Hike Odds
Updated
Updated · MarketPulse · Aug 12
GBP/USD Holds Above 1.3479 as US CPI Tests 48.1% Fed Hike Odds
3 articles · Updated · MarketPulse · Aug 12
Summary
Sterling stayed in a short-term uptrend above 1.3479 after breaking a medium-term descending trendline following last week's US payrolls report.
A core CPI reading above 2.5% could revive dollar strength and push GBP/USD toward 1.3400, while a softer print may extend the rally toward 1.3547, 1.3580 and 1.3643.
Fed pricing has turned less hawkish: futures imply a 48.1% chance of a 25-basis-point September hike, down from about 70% a week ago after mixed labor signals.
Over the past five trading sessions, the pound has been among the strongest major currencies against the dollar, with the USD/GBP cross down 0.38%.