GBP/USD bulls ‘n’ bears squaring up at month need testing 1.56 the fig

By FXStreet FXStreet (Guatemala) – GBP/USD is currently trading at 1.5614 with a high of 1.5679 and a low of 1.5548.

GBP/USD had shot up from the 1.5560 region towards 1.5680 on the back of … (still scratching heads)… employment costs index which is usually second tier data but was enough of a miss at 0.2% vs 0.6% consensus that the dollar was well and truly battered.

(GBP/USD spikes to 1.5650 as the treasury yields drop)

The FOMC statement was highlighting that there needs to be an improvement in the labour sector, but this could be somewhat of overkill on those points from the market. It certainly sets a scene for next week’s Nonfarm Payrolls as to the type of price action we may see on key data points leading up towards September.

As recently posted, the Fed has gone from, “Why should we raise rates to why should we not raise rates?”. As explained by Derek Halpenny, analyst at The Bank of Tokyo Mitsubishi UFJ explained. “The FOMC intentionally is maintaining the degree of flexibility required in these uncertain times.”

GBP/USD additional price action

The price has started to come back in favour of the bears down to test the 1.5620 support area and …read more

Source:: FX Street