GBP/USD drops after CPI news, while weaker dollar loses ground against Australian and Canadian dollars
A drop in UK consumer price inflation (CPI) has sent GBP/USD into retreat, while AUD/USD continues to rise and USD/CAD keeps falling thanks to a weakening US dollar.
GBP/USD reverses course after inflation data
GBP/USD revived the move higher on Tuesday, recovering from the losses of Friday and Monday, but today’s consumer privce index (CPI) figures have knocked it back once more.
Should the CPI news lead to a more sustained fall, we could then see a reversal back below $1.27, which could could open the way to another test of the 200-day simple moving average (SMA) and the lows of December around $1.25.
Buyers will need a close back above $1.276 to indicate that they have been able to reassert control.
AUD/USD keeps on climbing
The past week has seen the price rebound for AUD/USD spectacularly, and revives the uptrend from the October-lows.
The June and July highs at $0.69 now come into view. In the short-term bullish momentum will likely carry the price higher, moving the pair to fresh multi-month highs.
A reversal back below $0.667 is needed to stem upside momentum for the time being. This might then see the price head back towards the 200-day SMA.
USD/CAD hits four-month low
USD/CAD decline continues, with the price dropping to its lowest level since early August on Tuesday.
This puts it below the C$1.38 lows of mid-September, and leaves it on course to target the lows of July around C$1.31.
A recovery above C$1.34 might suggest some short-term strength and indicate that a low is in for the time being.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
