GBP/USD Swings on CPI, Brexit as the US Dollar Digs into Support

Talking Points:

– The British Pound has seen some two-way volatility this morning, initially jumping on a stronger-than-expected inflation print from the month of August, showing the second consecutive month of inflation gains after the earlier-year drawdown in the indicator. This was soon offset by negative Brexit headlines, and prices erased the entirety of that earlier gain and then some. At this point, the big question is whether buyers come-in to defend higher-low support, keeping the door open for bullish continuation; or whether we see a deeper retracement develop.

– Both EUR/USD and DXY are holding around similar levels as yesterday. EUR/USD put in another test of key resistance while USD/DXY continues to hold around the August/September swing-lows. We discussed these themes in-depth in our webinar yesterday entitled, US Dollar Price Action Setups as USD Wobbles at Support.

– DailyFX Forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach,

Article source: