18 Aug 2015
GBP/USD: UK CPI-led rally extends beyond 1.5700 – at monthly highs
FXStreet (Mumbai) - The British pound keeps pushing higher versus the US dollar in the mid-European session, driving GBP/USD to fresh session highs beyond 1.5700 levels, as the pound enjoys solid gains from UK CPI numbers which backs the case for BOE rate lift-off this year.
GBP/USD rises from 1.5670
The GBP/USD pair trades 0.80% higher at 1.5709, quickly cooling-off fresh monthly highs reached at 1.5717. The bid tone around the cable keeps increasing as the UK traders continue to cheer improving price pressures in the UK which now heightens expectations for BOE rate-hike.
UK inflation accelerated 0.1% in July on a yearly basis, compared to zero growth seen in the previous month. On a monthly basis the reading dropped 0.2% from the previous month's 0.0%. Core inflation, a less volatile measure stripped of energy and food prices, soared above estimates to 1.2%, its highest rate in five months.
More so, broad based US dollar weakness in anticipation of slightly weak US housing reports also supports the upside in the GBP/USD pair. The US dollar index, a virtual gauge of greenback’s strength, now trades -0.10% lower at 96.75.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5737 (July 1 High) above which gains could be extended to 1.5778 (June 30 High) levels. On the flip side, support is seen at 1.5664 (June 29 Low) below which it could extend losses to 1.5600 levels.
GBP/USD rises from 1.5670
The GBP/USD pair trades 0.80% higher at 1.5709, quickly cooling-off fresh monthly highs reached at 1.5717. The bid tone around the cable keeps increasing as the UK traders continue to cheer improving price pressures in the UK which now heightens expectations for BOE rate-hike.
UK inflation accelerated 0.1% in July on a yearly basis, compared to zero growth seen in the previous month. On a monthly basis the reading dropped 0.2% from the previous month's 0.0%. Core inflation, a less volatile measure stripped of energy and food prices, soared above estimates to 1.2%, its highest rate in five months.
More so, broad based US dollar weakness in anticipation of slightly weak US housing reports also supports the upside in the GBP/USD pair. The US dollar index, a virtual gauge of greenback’s strength, now trades -0.10% lower at 96.75.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5737 (July 1 High) above which gains could be extended to 1.5778 (June 30 High) levels. On the flip side, support is seen at 1.5664 (June 29 Low) below which it could extend losses to 1.5600 levels.