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17 Jul 2015
US CPI + Housing reaction: GBP/USD down to daily lows; case for a Fed Hike rate
FXStreet (Miami) - The GBP/USD is extending its decline from today's high of 1.5670 to break below daily PP at 1.5600 and to trade at daily lows around 1.5565.
Investors are getting hungry of Dollar following the latest set of US economic data that included an increase in the ex-food, energy inflation plus the highest level in housing permits and starts in near 8 years.
US building permits jumped to its highest level since 2007 with 1.343 million annual rate in June; Housing starts also rose to near 8-year highs. US CPI reported a 0.1% yearly inflation, in line with expectations; however, ex-food, energy data reported an increase to 1.8% from 1.9% in the previous month.
Data adds pressure to the Fed to hike rates this year following Janet Yellen remarks on a possible Fed hike rate soon. Speculations are that the Fed will hike rates in September.
GBP/USD levels:
Currently, GBP/USD is trading at 1.5576, down 0.21% on the day, having posted a daily high at 1.5674 and low at 1.5570. GBP/USD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
If the pair manages to extend declines, it will find supports at 1.5560, 1.5550 and 1.5510. To the upside, resistances are at 1.5600, 1.5640 and 1.5660.
Investors are getting hungry of Dollar following the latest set of US economic data that included an increase in the ex-food, energy inflation plus the highest level in housing permits and starts in near 8 years.
US building permits jumped to its highest level since 2007 with 1.343 million annual rate in June; Housing starts also rose to near 8-year highs. US CPI reported a 0.1% yearly inflation, in line with expectations; however, ex-food, energy data reported an increase to 1.8% from 1.9% in the previous month.
Data adds pressure to the Fed to hike rates this year following Janet Yellen remarks on a possible Fed hike rate soon. Speculations are that the Fed will hike rates in September.
GBP/USD levels:
Currently, GBP/USD is trading at 1.5576, down 0.21% on the day, having posted a daily high at 1.5674 and low at 1.5570. GBP/USD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
If the pair manages to extend declines, it will find supports at 1.5560, 1.5550 and 1.5510. To the upside, resistances are at 1.5600, 1.5640 and 1.5660.