“¢ Softer US CPI figures exert some downward pressure on the USD.
“¢ Brexit uncertainties hold investors from placing GBP bullish bets.
The GBP/USD pair held on to a mildly positive tone through the early North-American session and again had a rather muted reaction to the latest US consumer inflation figures.
Data released on Friday showed that the US headline CPI ticked higher by 0.1% during April, lifting the yearly rate to 2.0%, while core CPI rose 0.3% and 2.1% on monthly and yearly basis respectively.
The readings showed a slight pickup in inflationary pressure as compared to the previous month but were softer than consensus estimates and did little to impress the US Dollar bulls, lending some support to the major.
The pair, however, failed to capitalize and moved little as investors still seemed reluctant to place any aggressive GBP bullish bets amid the lack of progress in the UK cross-party talks to break the Brexit deadlock.
Hence, it would prudent to wait for a strong follow-through buying before traders start positioning for any further near-term appreciating move amid the recent escalation in the US-China trade tensions.
Technical levels to watch
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