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In a somewhat mixed and holiday-thinned week, the pair faces difficulties after today’s CPI data from Japan showed persistently elevated inflation, keeping pressure on the BoJ for policy normalization
The pair jumped earlier in the week due to the cool US CPI report and despite some consolidation it does not appear bothered by the substantial progress on inflation in Eurozone as shown by today’s data
The US 10-year real yield is charting a potential reversal pattern in its daily time frame – a head and shoulders top. The pattern has a downwards bias to it, as evident by the downwards sloping neckline (red trendline). The head and shoulders pattern will complete if the real yield breaks down below the neckline. The right shoulder was heavily influenced by the lower than anticipated CPI print on Tuesday,…
The pair surged earlier in the week to due to the soft US inflation report, but eases today despite strong wage and employment data from Australia
The pair posted its best day of the year on Tuesday on cool US inflation data, but faces headwinds today as the UK report also showed a significant deceleration
The pair found renewed vigor last week as Fed Chair Powell firmed up his rhetoric and now eyes levels not seen since 1990, with Tuesday’s US CPI inflation looming
GBP/USD slumped on Thursday as Fed Chair Powell firmed up his rhetoric and heads towards a losing week, but steadies today as the UK economy avoids a Q3 contraction according to preliminary data
The pair drops after its best week of the year, as the first hike since June by the Australian central bank was accompanied by a softer messaging around future moves
The pair dropped after the Fed sounded more dovish than previously and the NFPs showed weakness, but finds support today, defending key tech levels
The pair rises to critical levels, building on the gains form the Fed’s dovish hold after today’s US NFPs showed the addition of just 150,000 jobs in October
The spread between the UK and US 2-year notes (top chart) remains a strong driver of GBPUSD (middle chart). The current longer correlation is an impressive 86% (bottom chart). This suggests a strong positive relationship between the spread and cable.
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