Home Forex Markets Dollar rebounds across the board while GBP/USD tumbles, focus on US October CPI performance

Dollar rebounds across the board while GBP/USD tumbles, focus on US October CPI performance

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Dollar rebounds across the board while GBP/USD tumbles, focus on US October CPI performance

Sterling’s support weakened after the dollar regained its strength; cryptocurrency turmoil began to infiltrate many other markets as concerns over liquidity crunch increased; US CPI hits, which may exacerbate market volatility; GBP/USD will Whether to test down?

USD rebounds across the board, GBP/USD tumbles along with cryptocurrencies

Sterling has been caught up in the turmoil in the cryptocurrency market. The collapse of FTX and its inability to reach a rescue deal with Binance led to the collapse of risk assets.

The U.S. Justice Department said it was investigating the FTX case and had approached the SEC on the matter. Investors began to worry that margin calls could trigger a chain reaction that would lead to a demand for liquidity in other assets.

Asia-Pacific shares followed Wall Street’s losses overnight, and the dollar resumed its gains across the board by the end of New York session. During the Asian trading session on Thursday, as of this writing, the U.S. dollar has swallowed some of its gains.

Markets will receive the latest CPI (Consumer Price Index) data from the US on Thursday evening at 21:30 GMT+8, which is crucial for the movement of the dollar and the broader market as the performance of the CPI data may affect investment Viewers’ views on the direction of the Fed’s monetary policy.

On Wednesday, Chicago Fed President Evans moderated his previously outright hawkish stance. On the other hand, however, Richmond Fed President Barkin and Minneapolis Fed President Kashari reiterated their very hawkish stance on monetary policy.

According to a Bloomberg survey, economists expect the U.S. CPI monthly rate to rise to 0.6% in October from 0.4% recorded in September, and the annual rate may slow to 7.9% from the previous 8.2%.

The monthly rate of core CPI, which excludes food and energy, is expected to slow to 0.5% from 0.6% previously, and the annual rate of core CPI may slow to 6.5% from 6.6%.

Following the sharp sell-off, oil prices continued to be subdued. WTI crude futures were trading below $86 a barrel, while Brent crude futures were trading around $92.50 a barrel. Gold was steady, trading above $1,700 an ounce.

Click on the DailyFX Economic Calendar for details

GBP/USD trend technical analysis

GBP/USD tumbled overnight after failing to break above the recent high of 1.1646. 1.1646 is expected to continue to provide resistance for GBP/USD.

If there is further upside, the upper resistance will focus on the previous high and the breakthrough points of 1.1738, 1.1760 and 1.1890.

On the downside, support concerns the former lows of 1.1148, 1.1061, 1.0924 and 1.0354. (Translated by Lisa by Daniel McCarthy)

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