13 Jan 2015
GBP/USD hits fresh daily lows, UK CPI in focus
FXStreet (Mumbai) - Cable turned in red in the late Asian session, wiping out previous gains as traders now await UK’s price pressures print for major impacts on the currency pair.
The GBP/USD pair hits fresh intraday low at 1.5154, down -0.12% on the day, having posted day’s high at 1.5192 levels, just falling short of the 1.52 mark. The cable gave away previous gains and edged lower 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 hits fresh intraday low at 1.5154, down -0.12% on the day, having posted day’s high at 1.5192 levels, just falling short of the 1.52 mark. The cable gave away previous gains and edged lower 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.