GBP/USD – British pound improves to 3-week high, US numbers miss mark

Oct 11 16:10 2018 Print This Article

GBP/USD continues to gain ground this week. In Thursday’s North American session, the pair is trading at 1.3200, up 0.05% on the day. Earlier in the day, GBP/USD touched a high of 1.3250, its highest level since September 21. On the release front, the BoE released its credit conditions survey. In the U.S, key indicators disappointed, as CPI and jobless reports missed their estimates. On Friday, the U.S releases a key consumer confidence gauge, UoM Consumer Sentiment.

U.S. consumer inflation numbers for September fell short of their estimates. CPI and Core CPI both posted small gains of 0.1%, shy of the estimate of 0.2%. On a year-to-year basis, CPI increased 2.3% in September, down from 2.7% in August. Still, with inflation above the Fed’s 2% inflation target, these readings are unlikely to affect the Fed’s plans to raise interest rates in December, which would mark the fourth rate increase this year. The likelihood of a rate hike remains high, with the CME pegging the odds at 76%. On the employment front, unemployment claims climbed to 214 thousand, higher than the estimate of 207 thousand.

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