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US CPI pushes GBP/USD to fresh session highs

FXStreet (Mumbai) - The stagnant core CPI figure in the US, coupled with a negative headline inflation figure pushed the GBP/USD pair to a fresh session high of 1.5460.

Sterling erases Tuesday’s losses

At the current juncture , sterling has completely erased the sharp losses seen in the previous sessions. The latest uptick from 1.5420 to 1.5460 was triggered by a 0.1% month-on-month drop in the US August CPI number; its first negative print since January. Meanwhile, the core CPI stayed at 1.8%, but missed the estimated rise to 1.9%.

The result was a slight decline in the 2-year treasury yield to 0.795% from the pre-data level of 0.819% and a broad based USD weakness.

GBP/USD Technical Levels

The pair currently trades around 1.5450. The immediate resistance is located at 1.5476 (Sept 10 high), above which the spot could rise to 1.5516 (50-DMA). On the other side, support is located at 1.54 and 1.5345 (200-DMA).

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