UK’s consumer price inflation GBPUSD continued to inch higher during the New York session and managed to regain the 1.33 mark, printing fresh daily highs in recent dealings.
GBPUSD bounced from a low of 1.3234 scored during the European trade, and climbed nearly a full cent toward a high of 1.3326. The pair however, faltered ahead of Friday’s highs and it was last trading at the 1.3310 area, still up 0.28% on the day.
Buz Investors attention remains in a string of UK fundamental data to be published throughout the week, including August inflation figures, unemployment data and retail sales coupled with the BoE monetary policy decision on Thursday.
GBP/USD is seen trading at 1.3269 at the start of the new week – more or less where it ended the previous week.
The broad-based sell-off on global stock markets and decline in commodity prices has created a solid bid for the USD which tends to outperform as traders demand the safety of cash.
Driving the US Dollar higher and markets lower are the comments of several Fed officials who have suggested interest rates should be increased soon.
A rise could come as early as the September meeting with markets now pricing in a 30% chance of a rise.
Higher interest rates would be positive for the dollar as they attract more inflows of foreign capital seeking higher yields.
The sell-off in global stock markets that continues into the new week is also considered to be USD supportive as in times of stress the default desire to hold cash usually benefits the world’s most liquid currency.Click here for reuse options!