Forex: GBP/USD fails to hold 1.6000 handle
Forex pairs in this Article »
GBP/USD
FXstreet.com (Barcelona) - GBPUSD climbed off an overnight low at 1.5969, the daily pivot point, to touch 1.6020 following a session full of Chinese economic data.
Chinese CPI disappointed, with YoY coming in at 1,7% shy of expectations of 1,9% and -0.1%/0,1% MoM. Industrial Production, Retail Sales and Urban Investment all climbed at 9.6%/9.4%/14.5%/14% and 20.7%/20.6% respectively. Elsewhere however, Japanese Consumer Confidence for October came in at 39.7 against a previous reading of 40.1. Having made its early morning high at 1.6020, GBPUSD has since declined to where it is currently trading at 1.5995.
This morning has seen some early German data with YoY October CPI coming in line at 2% and 0% MoM for October. The Harmonised Index of Consumer Prices MoM October came in at 0% against expectations of 0.1% and in line for YoY at 2.1%. Looking ahead, the most significant news for the UK is CB Leading Economic Index numbers at 09:00 GMT, Total Trade Balance, Goods Trade Balance and Trade Balance (Non EU) at 09:30 GMT.
The Danske Research team see Cable as a possible buy but are staying neutral at the moment. Richard Lee, Independent analyst for FXStreet.com notes that the pair has consolidated above 1.59, causing a doji candlestick formation and the set up is indicating a potential correction higher, placing 1.61 in focus. He sees a test of the downside open the door to a move to 1.5847. Elsewhere, Asian markets are down, with European futures generally higher alongside the majority of commodities.
Chinese CPI disappointed, with YoY coming in at 1,7% shy of expectations of 1,9% and -0.1%/0,1% MoM. Industrial Production, Retail Sales and Urban Investment all climbed at 9.6%/9.4%/14.5%/14% and 20.7%/20.6% respectively. Elsewhere however, Japanese Consumer Confidence for October came in at 39.7 against a previous reading of 40.1. Having made its early morning high at 1.6020, GBPUSD has since declined to where it is currently trading at 1.5995.
This morning has seen some early German data with YoY October CPI coming in line at 2% and 0% MoM for October. The Harmonised Index of Consumer Prices MoM October came in at 0% against expectations of 0.1% and in line for YoY at 2.1%. Looking ahead, the most significant news for the UK is CB Leading Economic Index numbers at 09:00 GMT, Total Trade Balance, Goods Trade Balance and Trade Balance (Non EU) at 09:30 GMT.
The Danske Research team see Cable as a possible buy but are staying neutral at the moment. Richard Lee, Independent analyst for FXStreet.com notes that the pair has consolidated above 1.59, causing a doji candlestick formation and the set up is indicating a potential correction higher, placing 1.61 in focus. He sees a test of the downside open the door to a move to 1.5847. Elsewhere, Asian markets are down, with European futures generally higher alongside the majority of commodities.
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