GBP/USD off lows after BOE Forbes comments

FXStreet (Mumbai) - The GBP/USD now dropped below Tuesday’s high of 1.5413 before recovering quickly to trade around 1.5425 levels ahead of the US session.

Supported by 1.5405

The bid tone on the GBP slightly improved, ensuring the pair reversed from the low of 1.5405 after Bank of England member Forbes played down the disinflationary effect of the strong pound, thereby hinting at a possible tightening of the monetary policy.

The spot was rejected earlier today at a high of 1.5460 (61.8% of June rally), after which a bout of profit taking slowly pushed it back towards 1.54 levels. Ahead in the day, the spot could be affected by the US Michigan confidence and Import price index figures.

GBP/USD Technical Levels

The immediate resistance is located at 1.5460 (61.8% of June rally), ahead of a major hurdle at 1.55 levels. On the other side, support is seen at 1.54 (hourly 50-MA) and 1.5317 (hourly 200-MA).

Sep 11, 2015

AUD/USD: Cautious ahead of China data, around 0.7060

The Aussie halted its four-day rally and inched lower in the mid-European session, as traders remain wary ahead of the upcoming US data later today. While the release of Chinese data flow also keeps the market on the edge.

Sterling’s recent rise may have less impact on inflation than estimated – BOE’s Forbes

Speaking at the 47th Money, Macro and Finance research Group Annual Conference in Cardiff, Bank of England’s (BOE) policy maker Kristin Forbes noted that the recent appreciation of sterling has been considered as one of the most significant downward drivers on the CPI inflation in the UK, as the effect of cheaper commodities and imports continued to exert downward pressure on the overall CPI.