30 Jul 2015
GBP/USD keeps range around 1.5630 after US data
FXStreet (Mumbai) - The GBP/USD spot witnessed slight volatility, clocking a post-data high and low of 1.5646 and 1.5606, respectively, before settling around 1.5630.
USD supported by strength in 2-yr treasury yield
The US 2-year treasury yield rose back to the session high of 0.739% after the US Q1 GDP was revised higher. The two-year, which mimics short-term interest rate expectations, seems to have ignored the slower-than-expected Q2 GDP print.
Moreover, the yield curve has flattened (long duration yields stay weak, while short duration yields rise) after the US GDP and jobless claims report, which indicate a rise in the rate hike expectations. Consequently, the GBP/USD pair was restricted around 1.5930 with a negative bias.
GBP/USD Technical Levels
The immediate support is seen at 1.5568 (38.2% of Jul 14-Apr 15 plunge), followed by another support at 1.5545 (50-DMA). On the other hand, resistance is seen at 1.5639 (38.2% of June rally) and 1.5690.
USD supported by strength in 2-yr treasury yield
The US 2-year treasury yield rose back to the session high of 0.739% after the US Q1 GDP was revised higher. The two-year, which mimics short-term interest rate expectations, seems to have ignored the slower-than-expected Q2 GDP print.
Moreover, the yield curve has flattened (long duration yields stay weak, while short duration yields rise) after the US GDP and jobless claims report, which indicate a rise in the rate hike expectations. Consequently, the GBP/USD pair was restricted around 1.5930 with a negative bias.
GBP/USD Technical Levels
The immediate support is seen at 1.5568 (38.2% of Jul 14-Apr 15 plunge), followed by another support at 1.5545 (50-DMA). On the other hand, resistance is seen at 1.5639 (38.2% of June rally) and 1.5690.