13 Jan 2015
Update: GBP/USD falls further to 1.5118 ahead of UK Inflation Report
FXStreet (Mumbai) - Cable extended losses into the European morning as markets will closely watch out UK’s price pressures print for major impacts on the currency pair due out shortly.
The GBP/USD pair fell further to post fresh session’s low at 1.5118 levels, down -0.35% having posted day’s high at 1.5192 levels. The cable dropped as markets expect UK’s consumer price inflation (CPI) to have slowed to 0.7% in December, from a twelve-year low of 1% measured a month before.
Moreover, if the CPI does come in line with expectations, then it will be Governor Carney's first open letter to the UK Chancellor explaining the reasons why inflation has fallen to such an extent and what the Bank of England (BOE) proposes to do to ensure inflation comes back to the target.
Muted inflation was partly a reason why the BoE kept the monetary policy unchanged this month.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5170 above which gains could be extended to 1.52 levels. On the flip side, support is seen at 1.5074 (Jan 9 Low), below which it could extend losses to 1.5020 levels.
The GBP/USD pair fell further to post fresh session’s low at 1.5118 levels, down -0.35% having posted day’s high at 1.5192 levels. The cable dropped as markets expect UK’s consumer price inflation (CPI) to have slowed to 0.7% in December, from a twelve-year low of 1% measured a month before.
Moreover, if the CPI does come in line with expectations, then it will be Governor Carney's first open letter to the UK Chancellor explaining the reasons why inflation has fallen to such an extent and what the Bank of England (BOE) proposes to do to ensure inflation comes back to the target.
Muted inflation was partly a reason why the BoE kept the monetary policy unchanged this month.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5170 above which gains could be extended to 1.52 levels. On the flip side, support is seen at 1.5074 (Jan 9 Low), below which it could extend losses to 1.5020 levels.