- GBP/USD is trading sideways as monthly and annual US CPI data is released, as expected.
- In response to the US CPI, the Dollar Index (DXY) sees small gains.
- All eyes are on Wednesday’s US Retail Sales data and possible Fed action in March.
He GBP/USD trades sideways on Tuesday after US inflation data. Pound (GBP/USD) round 1.2164 at the close of this edition. The 1.2205 level was touched briefly just after the US CPI data release, but the pair quickly pulled back to the bottom of its trading range.
YOUS Consumer Price Index (CPI) (February)
On Tuesday, the Bureau of Labor Statistics reported that inflation in the US, measured by the Consumer Price Index (CPI ), decreased from 6.4% in January to 6% in February. The current reading matches the market expectation of 6%.
In monthly terms, the CPI goes from 0.5% from January to 0.4% in February, again in line with analyst estimates.
For its part, the core CPI, which excludes volatile food and energy prices, rose 0.5% in February, as expected in monthly terms, bringing the annual rate down from 5.6% to the 5.5%.
Market reaction:
The initial response of GBP/USD to the inflation data for February it was slightly positive. It then pulled back from its daily ATH of 1.2205, and is currently trading around 1.2164 at the close of this edition.
The Dollar IndexAmerican (DXY) It is trading slightly higher around 103.87 today, awaiting US Retail Sales data on Wednesday.
In addition, the yield on the bonds of the US Treasury 10 years fell by approximately 1% and stands at around 3.66% on this day.
Main economic events:
Retail Sales offebruary in The US on Wednesday at 12:30 GMT is critical near-term data that needs to be watched closely.
The catastrophic failure of Silicon Valley Bank (SVB) has led markets to anticipate a less aggressive stance from the Federal Reserve (Fed). It is likely to avoid raising rates in the future to avoid more unfortunate bank collapses.
Technical vision:
GBP/USD trades above the SMA of 20 and the SMA of 50 daily, 1.2016 and 1.2130respectively, indicating a positive bias at this time.
Also, the RSI (14 ) daily is in positive territory in 55,965. The daily pivot point is 1.2138, with daily resistance levels at 1.2244, 1.2306 and 1.2412. Daily support levels are at 1.2077, 1.1970 and 1.1909.
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.
