GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP rose 0.07% against the USD and closed at 1.5983, after an official data revealed that the UK’s consumer price index rose 0.4% (MoM) in September, more than analysts’ expectation for a 0.3% rise and compared to a similar rise seen in the previous month. Separately, the DCLG house price index also advanced 3.8% (YoY) in the month of September, surpassing analysts’ call for a 3.6% rise from a 3.3% increase recorded in the earlier month. Another official report indicated that the UK’s retail price index rose 0.4% (MoM) during September, at par with market expectations and compared to a 0.5% rise witnessed in the previous month.
However, the gains were capped after a report confirmed that, on a non-seasonally adjusted basis, the nation’s producer price index – output declined 0.1% (MoM) in September, defying market estimate for a 0.1% rise and compared to a 0.2% increase registered in the preceding month.
In the Asian session, at GMT0300, the pair is trading at 1.5969, with the GBP trading 0.09% lower from yesterday’s close.
The pair is expected to find support at 1.5919, and a fall through could take it to the next support level of 1.5868. The pair is expected to find its first resistance at 1.6016, and a rise through could take it to the next resistance level of 1.6062.
Last week the central bank announced its decision to keep interest rates unchanged, reiterating its pledge to wait for a greater pick up in the jobs market. With this in mind, traders await the release of UK’s monthly jobless claim data and a report on the ILO unemployment rate for the month of September, due later today. Expectations had risen that unemployment claims will fall by 25,000 in September, compared to a drop of 32,600 the month before.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
