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16 Sep 2015
GBP/USD consolidates amid rising Treasury yields
FXStreet (Mumbai) - The GBP/USD pair is trading in the sideways manner near daily highs amid rising treasury yields in the US as investors await the US monthly consumer price index data.
Focus on US data
The US core CPI is likely to hog the limelight and could have a major impact on the 2-year treasury yield ahead of tomorrow’s FOMC rate decision. The short-duration treasury yields in the US are known to mimic rate hike expectations. The yield recovered early losses to trade more than one basis points higher at 0.81%, thereby restricting further losses in the USD for the time being.
Sterling spiked more than 100 pips earlier today on the back of a stellar domestic wage growth data and Merger and Acquisition talks.
GBP/USD Technical Levels
The spot currently trades around 1.5420. The immediate resistance is seen at the daily high of 1.5434, above which the pair could re-test 1.5476 (Sept 10 high). On the other side, support is seen at 1.54 and 1.5345 (200-DMA).
Focus on US data
The US core CPI is likely to hog the limelight and could have a major impact on the 2-year treasury yield ahead of tomorrow’s FOMC rate decision. The short-duration treasury yields in the US are known to mimic rate hike expectations. The yield recovered early losses to trade more than one basis points higher at 0.81%, thereby restricting further losses in the USD for the time being.
Sterling spiked more than 100 pips earlier today on the back of a stellar domestic wage growth data and Merger and Acquisition talks.
GBP/USD Technical Levels
The spot currently trades around 1.5420. The immediate resistance is seen at the daily high of 1.5434, above which the pair could re-test 1.5476 (Sept 10 high). On the other side, support is seen at 1.54 and 1.5345 (200-DMA).