•GBP/USD is consolidating around 1.3400, just above year-to-date lows printed earlier in the session.
Worse than expected UK GDP data did little to impact GBP amid subdued Thursday trading conditions due to Veteran’s Day.
•Having briefly dipped to fresh year-to-date lows in the 1.3360s earlier in the session, GBP/USD is currently consolidating either side of the 1.3400 level. Trading conditions will likely be subdued on Thursday given the fact that US markets are partially closed in observance of Veteran’s Day (bond markets are closed, but future and equity markets are open).
That will give traders some respite after a hectic
session on Thursday that saw the USD push higher across the board following a much hotter than expected Consumer Price Inflation report for the month of October. That report, and the subsequent surge in US bond yields/hawkish repricing of USD short-term interest rate markets, sent GBP/USD cratering from above 1.3500 to current levels more than 100 pips lower.
• The consumer price index surged 6.2% from a year ago in October, the most since December 1990.
Core inflation, stripping out food and energy, increased 4.6%, the fastest gain since August 1991.
Energy, shelter and vehicle costs led the gains, which more than wiped out the wage increases that workers received for the month.
Worse than expected UK GDP data did little to impact GBP amid subdued Thursday trading conditions due to Veteran’s Day.
•Having briefly dipped to fresh year-to-date lows in the 1.3360s earlier in the session, GBP/USD is currently consolidating either side of the 1.3400 level. Trading conditions will likely be subdued on Thursday given the fact that US markets are partially closed in observance of Veteran’s Day (bond markets are closed, but future and equity markets are open).
That will give traders some respite after a hectic
session on Thursday that saw the USD push higher across the board following a much hotter than expected Consumer Price Inflation report for the month of October. That report, and the subsequent surge in US bond yields/hawkish repricing of USD short-term interest rate markets, sent GBP/USD cratering from above 1.3500 to current levels more than 100 pips lower.
• The consumer price index surged 6.2% from a year ago in October, the most since December 1990.
Core inflation, stripping out food and energy, increased 4.6%, the fastest gain since August 1991.
Energy, shelter and vehicle costs led the gains, which more than wiped out the wage increases that workers received for the month.
