GBP/USD has regained its traction following Wednesday’s wobbly action. Near-term bullish bias stays intact while eyes turn to US Consumer Price Index (CPI) data for January, FXStreet’s Eren Sengezer reports.
Dollar could capitalize on hot inflation data and force GBP/USD to turn south.“The US Bureau of Economic Analysis will release the CPI data for January. In case this report suggests that inflation in the US continued to heat up at the beginning of the year, market participants could price in an aggressive rate hike in March and help the dollar outperform its rivals. On the flip side, the greenback is likely to come under renewed selling pressure in case the CPI readings fall short of estimates.”
“1.3600 (psychological level) aligns as the next immediate target on the upside before 1.3620 (static level) and 1.3650 (static level).”
GBP/USD holds above 1.3550 as focus shifts to US CPI.GBP/USD gained traction in the early European session and climbed above 1.3550 before going into a consolidation phase. The US Bureau of Economic Analysis will release the January CPI data and BOE Governor Bailey will deliver a speech later in the days.
Gold stays quiet above $1,830, eyes on US inflation report .Gold seems to have gone into a consolidation phase above $1,830 after closing the previous four trading days in the positive territory. The benchmark 10-year US Treasury bond yield stays flat above 1.9% following Wednesday’s decline as investors await US CPI data.