GBP/USD (current price: 1.2300)
The Pound surprisingly shot higher in early trading after the better than expected British CPI Report. The yearly number came in at 1.0%, leading to a strong intraday rally in the battered currency. U.S. NAHB Housing Market Index was lower than expected, while the U.S Core CPI Index came in at a monthly rate 0.1%, also lower than expected. The Dollar still rallied slightly in late trading, but Cable finished close to its intraday high, as the Pound remained the strongest currency of the day.
Our assessment: The sudden jump in the pair might lead to further upside as the oversold conditions could help a rally, but today’s Employment report could change the trend in the case of a negative surprise.
