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26 Feb 2015
GBP/USD falls below 1.55 ahead of US CPI data
FXStreet (Mumbai) - The GBP/USD fell below 1.55 levels as the bond yield spread continues to remain in favor of the US dollar ahead of the US CPI, weekly jobless claims and Durable goods orders data.
GBP/USD: yield spread favors USD
The 10-year Gilt yield in the UK fell 3.9 basis points to 1.681%, while the 10-year treasury yield in the US declined 2.5 basis points to 1.945%. The relative weakness in the Gilt yields led to a fall in the GBP/USD pair from a high of 1.5550 to the current level of 1.5495.
The yield spread could widen or contract further depending on the US CPI print. The prices are seen falling 0.1% in January, compared to a 0.8% rise in December. Meanwhile, the Initial jobless claims are seen at 290K for the week ended Feb. 21, while the durable goods orders are in January are seen rising 1.6%.
GBP/USD Technical Levels
The immediate support is seen at 1.5478, under which losses could be extended to 1.5450. On the flip side, a break above 1.5550 could see the pair rise to 1.5580 levels.
GBP/USD: yield spread favors USD
The 10-year Gilt yield in the UK fell 3.9 basis points to 1.681%, while the 10-year treasury yield in the US declined 2.5 basis points to 1.945%. The relative weakness in the Gilt yields led to a fall in the GBP/USD pair from a high of 1.5550 to the current level of 1.5495.
The yield spread could widen or contract further depending on the US CPI print. The prices are seen falling 0.1% in January, compared to a 0.8% rise in December. Meanwhile, the Initial jobless claims are seen at 290K for the week ended Feb. 21, while the durable goods orders are in January are seen rising 1.6%.
GBP/USD Technical Levels
The immediate support is seen at 1.5478, under which losses could be extended to 1.5450. On the flip side, a break above 1.5550 could see the pair rise to 1.5580 levels.