The currency pair has edged higher and has managed to hit fresh new highs on the short term, has erased the yesterday’s losses and looks determined to climb even higher if the US dollar index will slide further. The GBP/USD has resumed the short rebound and is targeting some important upside targets, remains to see how will reach when will touch these levels.
Price has rallied aggressively as the dollar was punished by the USDX massive drop, the index has resumed the correction phase and looks unstoppable on the Daily chart. The USDX has ignored the 99.84 static support and could drop further if will stabilize below this level, a further drop will force the USD to lose more ground versus its major rivals.
The US dollar index could approach and reach the 99.24 previous low in the coming days, could find support also at the 99.12 level, personally I still believe that the index could move sideways in the coming weeks, this scenario will take shape only if will stay above the mentioned support levels.
The greenback has dropped further in the afternoon, even if the United States Current Account has increased from -116B to -112B in the fourth quarter, despite that the economists have predicted an increase to -129B.
The Cable has rallied today also because has received support from the United Kingdom data, we had some positive numbers that have boosted the Pound. The CPI rose by 2.3% In February, beating the 2.1% forecast, the indicator has continued to increase after the 1.8% growth in the previous reporting period, while the Core CPI surged by 2.0% in the previous month, exceeding the 1.7% estimate, has beaten also the 1.6% growth since January.
The Pound has received a helping hand also from the RPI, which has increased by 3.2% in February, beating the 2.9% estimate and the 2.6% growth in the previous reading period, while the Public Sector Net Borrowing surged from -11.7B to 1.1B, but has come better versus the 2.9B estimate. We have also some negative data from the United Kingdom today, but the Cable wasn’t impressed.