- The pound among the best performing currencies on Tuesday.
- GBP / USD tests the highs of the last two weeks.
- US inflation data in focus.
The GBP / USD is rising on Tuesday, with the pound being one of the few currencies to be firm against the dollar. The price climbed to 1.3882 reaching the maximum since Friday and approaching the area close to 1.3900, which is an important barrier, whose break could lead to more rises.
Looking ahead to the next few hours, the key event will be the publication of the US inflation data for August. A rise in the Consumer Price Index of 0.4% and 0.3% in the underlying is expected. With the next meeting of the Federal Reserve next week, the price evolution figures will be key to expectations and therefore could have a high impact on the bond market and the dollar.
At United Kingdom data on the labor market were known. The three-month unemployment rate fell to 4.6% in line with expectations. Weekly earnings were up 8.3% from a year ago (consensus: + 8.2%) and claims for unemployment benefits fell by 58,600 in August. On Wednesday it will be the turn of the inflation data for August. The next meeting of the Bank of England is on September 23rd.
The pound is among the best of the day, highlighting the fall of the EUR / GBP to the recent floor at 0.8510, which defends the key support of 0.8500. The dollar, for its part, recovered in the last hours, taking the DXY back to positive territory, above 92.60.
Technical levels
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