GBP and the US economy, which included the testimony of Deputy Governor of the Bank of England John Conlev at the parliamentary session for re-appointment to the Treasury Committee in London and statements by British Prime Minister Theresa May on the issue of Britain’s exit from the European Union.
We have followed GBP through the UK economy to reveal inflation data, which showed a slowdown in the growth of inflationary pressures to 0.1% in excess of expectations of 0.3% versus 0.7% in the previous monthly reading according to the CPI reading for September, as indicated by the annual reading of the index slowing growth To 2.4% versus 2.7% in August’s previous reading, below expectations of 2.6%. The core annual reading showed slowing growth to 1.9% versus 2.1%, below expectations of 2.0%.
GBPUSD attempted to break through 1.3226 yesterday but could not hold above it, showing some bearish bias and approaching SMA 50, noting that Stochastic is beginning to shed its negative momentum now, awaiting a positive momentum that will push the price to resume Height.
Therefore, our bullish outlook remains valid for today with stability above 1.3085, keeping in mind that our next target is 1.3300.
The trading range for today is expected among 1.3100 support and 1.3280 resistance
The general trend for today is bullish
The PPI index showed that growth accelerated to 1.3% from 1.2% in August, above expectations of 0.8%. The annual reading of the index showed that growth accelerated to 10.3% compared to 9.4% in the previous year’s reading, The annual reading of the house price index showed growth slowed to 3.2% from 3.4% in July’s annual reading, beating expectations of 2.8%.
On the other hand, we followed the US economy reading the industrial production index, which showed a slowdown in growth to 0.3% compared to 0.4% in August, in contrast to expectations of a slowdown of growth to 0.2%, while the reading of the index of energy utilization rate stability of the pace Growth at 78.1% was unchanged from August, outpacing expectations for a faster growth rate of 78.2%, leading to a reading of leading indicators, which showed a 0.2% decline versus stability at zero levels in July.
In contrast, the Bank of England’s monetary policy committee member John Conlev said that the results of his country’s exit from the EU could cause the pound to collapse, adding that the royal currency would be more interactive with the clarity of the exit features. In the exchange rate is not effective, while expressing that the current exchange rate movements still reflect the market readiness for all possible exit scenarios.