- GBP / USD definitely moves away from 1.3900, tests the 1.3800 zone.
- The dollar soars in the market after inflation data.
The GBP / USD plummeted from 1.3850 to the 1.3800 zone, hitting the lowest level since Friday after US inflation data, triggered a strong rally of the dollar in the market.
The data that consumer inflation rose to 5.4% in June, the highest level since 2008, and above expectations, caused the DXY to jump above 92.70, approaching the recent peak.
The figures also generated a drop in stocks and an extended one in the rebound of Treasury bond yields. The 10-year rate reached 1.38%. The data is expected to intensify the debate around the monetary policy of the Federal Reserve, which sees the increase in inflation as something temporary.
The Wednesday, before the US Congress, Jerome Powell He will present the semi-annual message and will surely pronounce on it and also the legislators will ask him about the subject.
The The advance of the dollar in the last hour occurred on all fronts. The support to be taken into account in the GBP / USD is the 1.3800 area that, if it gives way, would focus on 1.3750, with an intermediate support at 1.3775. A return above 1.3850 would ease downward pressures.
Technical levels
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