- The Dollar Index fell 0.90%, at its lowest level in almost four months.
- The pound also rises strongly against the euro on Thursday.
- GBP/USD is heading for the first close above the 200-day SMA since September 2021.
The GBP/USD is having its best day in weeks, buoyed by a weaker US dollar overall. The pound is also rising against the euro. Cable peaked at 1.2310, the highest level since June, and then pulled back to 1.2260.
Over the past few hours, the US dollar pared losses but remains sharply lower, after extending the slide that began after Fed Chairman Jerome Powell’s speech on Wednesday. Fed officials signal that they will raise rates again at the December meeting, but at a slower pace.
Expectations of a less aggressive level in the rises are pushing the dollar down. The economic data published on Thursday showed signs of easing inflation (falls in the core PCE and the ISM Manufacturing Prices Paid Index) and weakening conditions in the manufacturing sector (the ISM Manufacturing fell to 49 in November).
Beyond the weakness of the dollar, the British pound is also rising against the euro. EUR/GBP broke below the critical support of 0.8570 and fell to 0.8552, the low since August 30.
Above the 200-day SMA
GBP/USD is on track to close above the 200 SMA for the first time (today at 1.2150), another positive technical development for bulls. So far, the price has been unable to consolidate above 1.2300 which is the resistance level to break; if it succeeds, it would open the doors to more profits.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
