Less-than-stellar US macroeconomic data kept the US dollar index in check Thursday, wrapping up the session unchanged. The Federal Reserve Bank of Philadelphia’s monthly report revealed the diffusion index for current general activity fell 10 points this month to 0.3, its lowest reading in six months.
The pound held onto the bulk of Tuesday’s downside yesterday, dipping below 1.31 before finding a base at around 1.3070. Limited reaction was observed in light of UK inflation metrics, in which headline CPI modestly topped forecasts ahead of the BoE’s monetary policy update today.
Europe’s single currency concluded Tuesday mixed against the greenback, after failing to sustain gains north of November’s opening level at 1.1156. As evident from the H4 timeframe this morning, traders are left with a shooting star candlestick pattern , which could entice selling towards nearby trend line support, extended from the low 1.0981.
Sterling’s post-UK election faded after a fleeting expedition north of 1.34 vs. the buck Monday. Weighed by disappointing preliminary PMIs for December, particularly in the manufacturing sector, and reports UK PM Boris Johnson plans law change to block a further Brexit delay
GBP/USD bulls tightened their grip in recent sessions, strengthened on the back of Thursday’s UK General Election, culminating in a clear win for the Conservative Party.
