- GBP/USD manages to gain on the day amid yesterday’s positive economic data and some correction in the US dollar.
- US treasury bonds have slid 0.5% on the day, weighing on the Greenback.
- US CPI and Fed’s minutes remain the key events for the market participants today.
The GBP/USD price analysis suggests a slightly bullish scenario as the US dollar corrects lower amid a decline in the US treasury yields. Taking UK growth performance into account, the cable maintains its range of around 1.3605. On the day, the spot moves up 0.15%.
If you are interested in automated forex trading, check our detailed guide-
The pound price against the dollar traded around 1.3600 on Wednesday for the third day in a row. In August, industrial production in the UK increased faster than expected, but market participants paid little attention to the data.
On Tuesday, the major currency pair remained within its usual ranges as investors waited for critical data to be released. Despite negative market sentiment and falling US Treasury bond yields, investors struggled to find risk-sensitive investments.
At the time of the press, the US dollar index was up by a modest 0.35 percent, while the 10-year US Treasury bond yield fell by 0.5% from Tuesday.
UK’s August GDP report showed the economy grew slower than expected at 0.4% instead of 0.5% and 0.1% of the previous month. In addition, the monthly service index (August) was 3.7%, versus forecasts of 1.2% and 5.2% for the preceding month.
Manufacturing in the UK picked up momentum in August, according to data released Wednesday by the Office for National Statistics (ONS). Despite expectations of a rise in the total industrial production to 0.8% this year, industrial production reached 0.5% m/m in August, vs. nothing to -1.0% in July.
Manufacturing output in the UK fell by 4.1% in August, compared to expectations of 6.0%. Overall industrial production increased 3.7% in August compared to the forecast of 3.0% and 4.4% the previous month.
US Consumer Price Index (CPI) data is scheduled for release by the Bureau of Labor Statistics at 12:30 PM GMT. In addition, Federal Reserve minutes for September’s policy meeting will be released at 6:30 PM GMT.
If you are interested in guaranteed stop-loss forex brokers, check our detailed guide-
GBP/USD price technical analysis: Ranging near 20-SMA
The GBP/USD price is wobbling around the 20-period SMA on the 4-hour chart. The pair has covered 45% average daily range so far which shows high volatility in the market. The GBP/USD pair is around 33 pips above the daily lows which shows its bullish potential towards testing the mid-1.3600 ahead of the 1.3700 handle. On the flip side, any drop below the 1.3600 handle may look to test 1.3570 followed by 1.3500.
Looking to trade forex now? Invest at eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Share
Saqib Iqbal
