GBP/USD tests 1.4200 ahead of London open, EZ CPI
- Cable climbs higher on weak US Dollar.
- EZ CPI data to excite markets, 10 am GMT.
GBP/USD has climbed through Asia, temporarily claiming the 1.4200 handle as the US Dollar continues to slide in global markets.
The Sterling has shrugged off Brexit concerns despite a leaked memo yesterday outlining potential negative economic impacts should the United Kingdom leave the European Union without trade agreements in place; also failing to curb the Sterling is in-fighting within Theresa May's ruling Tory party, with rumblings of calls for a no-confidence vote in Theresa May's leadership coming from backbench MPs.
The US Dollar hasn't faired well recently, continuing its long-term decline precipitated by Donald Trump's presidential election in late 2016. Despite recently being bolstered by yield increases in benchmark 10-year US Treasury bonds, crossing 2.73% to make four-year highs, the Greenback has resumed being the big loser in currency markets as heavy data looms at the end of the week with US Non-Farm Payrolls.
GBP/USD can expect some knock-on volatility following preliminary CPI data for the Eurozone coming out at 10 am GMT; any Euro-bullish market sentiment could force the Dollar down against its other trading pairs, possibly sending GBP/USD higher through the London market session.
GBP/USD Technicals
GBP/USD climbed steadily through the Pacific market sessions, with the nearest swing support marked at 1.4185 and 1.4170 right behind it; H4 and Daily charts continue their bullish framework, with Daily indicators yet to show signs of turning bearish, and H4 showing potential for the Cable to finish the week higher.
Intraday pivot points:
R2: 1.4220
R1: 1.4147
PP: 1.4086
S1: 1.4012
S2: 1.3952