- The US dollar soars supported by US economic data.
- The momentum of the pound’s losses amid risk aversion, turns negative even against the euro.
- GBP / USD is heading towards the lowest daily close since late August.
GBP / USD fell below 1.3800 and fell to 1.3763, hitting the lowest level since September 9. It remains near lows, under pressure, amid a rally in the greenback across the board.
Data pushes US dollar up ahead of FOMC meeting
US economic data released Thursday beat expectations, particularly the Philly Fed and retail sales. These numbers sparked a rally in the dollar and a massive sell-off in Treasuries. The 10-year rate jumped to 1.35% before easing to 1.32%.
Ahead of next week’s FOMC meeting, the greenback appreciated against all of its rivals. Before economic reports, the pound was among the best performers. However, the decline in stock prices after the start of the US session weighed on the pound sterling. EUR / GBP rebounded from the key 0.8500 area, back towards 0.8550, weakening the pound further.
GBP / USD could post the lowest daily close since late August, below the 20-day simple moving average. The pair is breaking a consolidation range. Next support below 1.3760 could be seen around September lows at 1.3720 / 25.