- The US dollar, mixed across the board, finds support in the rebound in US yields.
- UK: Prime Minister Johnson changes his cabinet members.
- GBP / USD is holding daily gains, but still unable to break 1.3900.
The GBP/USD it touched a new daily high during the US session at 1.3853 and then fell back towards 1.3820. It is hovering around 1.3840, in positive territory for the day. The cable continues to move sideways, with support around 1.3800 and unable to confirm levels above 1.3900.
Reorganization of data and cabinets
UK Prime Minister Boris Johnson made changes to his cabinet. Liz Truss will be Secretary of Foreign Affairs and Dominic Raab will become Secretary of Justice. Robert Buckland, Robert Jenrick and Gavin Williams will leave the Cabinet office.
Earlier on Wednesday, UK economic data showed higher than expected inflation figures. In August the CPI rose 3.2% (annual). The numbers increased the pound only modestly.
“The next focus for the British pound will be tomorrow’s August retail sales release. It is expected to rebound 0.8% after the -2.4% month-on-month decline recorded in July. That number sparked speculation that much of the pent-up demand related to the UK lockdown has run its course. Tomorrow’s data will likely be key in setting that tone ahead of the Bank of England policy meeting on September 23, ”Rabobank analysts wrote.