- The pound has the worst day since the beginning of the month against the dollar.
- US data beats expectations, now focus shifts to Fed minutes.
The GBP / USD continues to move in a downtrend and retreat after hitting a nearly three-year high at 1.3951 on Tuesday. The price has just hit a fresh three-day low at 1.3840 and is trading around 1.3855, dropping more than 40 pips from yesterday’s close, enough to make it the steepest daily decline so far this month.
The dollar continues to rise and received an extra boost from the US retail sales and wholesale inflation data for January. Both, especially sales, widely exceeded expectations, taking the dollar to new highs in the market.
The bags are with slight losses. On Wall Street the Dow Jones falls 0.01% and the Nasdaq 0.7%, both far from the lows. Traders are closely monitoring movements in the bond market. The next key event of the day will be the release of the Federal Reserve minutes.
Despite the drop against the dollar and the decline in stocks, the pound is rising against the euro. EUR / GBP returned below 0.8700, hitting lows since April. The rise in the pound received a boost from hours-old UK inflation data.
Technical levels
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