GBP/USD tumbles to one-week lows under 1.3800 as the US dollar strengthens
- US dollar soars supported by US economic data.
- Pound losses momentum amid risk aversion, turns negative even against EUR.
- GBP/USD heads for lowest daily close since late August.
The GBP/USD broke below 1.3800 and tumbled to 1.3763, reaching the lowest level since September 9. It remains near the lows, under pressure, amid a rally of the greenback across the board.
Data boosts US dollar ahead of FOMC meeting
Economic data from the US released on Thursday came in above expectations, particularly the Philly Fed and retail sales. Those numbers triggered a rally of the dollar and a sell-off in Treasuries. The 10-year yield jumped to 1.35% before easing to 1.32%.
Ahead of next week’s FOMC meeting, the greenback rose versus all its rivals. Prior to the economic reports, the pound was among the top performers. However, the decline in equity prices after the beginning of the American session weighed on sterling. The EUR/GBP rebounded from the key 0.8500 area, back toward 0.8550, weakening further the pound.
The GBP/USD could post the lowest daily close since late August, under the 20-day simple moving average. The pair is breaking a consolidation range. The next support below 1.3760 might be seen around September lows at 1.3720/25.
Technical levels