The Sterling met extra buying interest following the release of UK’s CPI figures, sending GBP/USD to fresh peaks in the 1.2280 area.
GBP/USD bid after upbeat data
The pair clinched fresh daily highs after consumer prices in the UK economy have surprised to the upside during September. In fact, headline CPI rose at an annualized 1.0%, while Core CPI gained 1.5% over the last twelve months vs. initial estimates at 0.8% and 1.4%, respectively.
Spot is thus extending its weekly upside to the upper 1.2200s for the time being, although it keeps the trade within the recent range amidst a broad-based selling bias around the greenback.
In that regard, today’s price action will be put to the test later in the NA session in light of the publication of US inflation figures measured by the CPI, seconded by the NAHB index and TIC Flows.
Market expectations of a Fed’s move by year end remains the exclusive driver behind USD-rally, although its upside momentum seems to have ebbed somewhat at the beginning of the week, allowing the ongoing rebound in the risk-associated universe.
GBP/USD levels to consider
As of writing the pair is gaining 0.44% at 1.2238 and a break above 1.2377 (high Oct.11) would open the door to 1.2644 (20-day sma) and finally 1.2761 (high pre-‘flash crash’ Oct.7). On the flip side, the immediate support lines up at 1.2086 (low Oct.11) ahead of 1.1450 (low post-‘flash crash’ Oct.7).