- The pound trims losses and breaks above 1.1400 again.
- Investors remain on the lookout, awaiting the US elections and the CPI results.
- The Fed’s Barkin warns that the fight against inflation could cause a recession.
The pound has rebounded from session lows in the mid 113.00 area in the US session on Wednesday, returning above 114.00 amid a broad dollar pullback. However, the pair is still down 1% on the daily chart, having peaked just above 1.1600 on Tuesday.
The dollar rebounds in a session of cautious markets
The dollar rallied on Wednesday, with investors reluctant to place significant bets, awaiting the outcome of the US mid-term elections and the release of US consumer inflation figures on Thursday. .
The latest news has shown better than expected results for the Democrats, as the “red wave” announced by the media has not crystallized. However, the final results could still take some time, and key issues such as control of Congress and Biden’s agenda for next year are still uncertain.
On the other hand, US CPI data due out on Thursday could provide more insight into the magnitude of the Federal Reserve’s next interest rate hike. Any surprise in this data could boost dollar volatility.
In a tight macroeconomic calendar, on Wednesday, US Oil Stockpiles have shown a larger than expected increase in the week of November 4th. The US Energy Information Administration has reported an increase of 3.92 billion barrels, well above the consensus of 1.36 million barrels.
In addition, the president of the Richmond Fed, Richard Barkin, has warned that the fight against inflation “could lead to a recession”, since the central bank’s rate hikes are challenged by artificial elements such as “the high saving of consumers and the lack of labor supply”.
Technical levels to watch
GBP/USD
Overview | |
---|---|
last price today | 1.1411 |
daily change today | -0.0125 |
daily change today | -1.08 |
Daily opening today | 1.1536 |
Trends | |
---|---|
daily SMA20 | 1.1376 |
daily SMA50 | 1.1333 |
daily SMA100 | 1.1679 |
daily SMA200 | 1.2295 |
levels | |
---|---|
Previous daily high | 1.1599 |
Previous Daily Low | 1,143 |
Previous Weekly High | 1.1614 |
Previous Weekly Low | 1.1147 |
Previous Monthly High | 1.1646 |
Previous Monthly Low | 1.0924 |
Daily Fibonacci of 38.2%. | 1.1534 |
Fibonacci 61.8% daily | 1.1494 |
Daily Pivot Point S1 | 1.1444 |
Daily Pivot Point S2 | 1.1353 |
Daily Pivot Point S3 | 1.1275 |
Daily Pivot Point R1 | 1.1613 |
Daily Pivot Point R2 | 1.1691 |
Daily Pivot Point R3 | 1.1782 |
Source: Fx Street
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