On Tuesday the 12th of September, during trading in Europe, the centre of attention, judging by price fluctuations, was the British pound. After the UK’s CPI data was released, the pound rose across the market. The pound/dollar rate jumped 100 pips to 1.3288 and the euro/pound rate dropped 89 pips to 0.8982.
Year on year inflation in the UK came to 2.9% against a forecast of 2.8%. The core index, which excludes food and energy, came out at 2.7% YoY against a forecast of 2.5% YoY.
The US dollar has been showing mixed dynamics against the majors in today’s European session. It’s currently trading down against both the pound and Kiwi dollar, while trading up against the euro, loonie, franc, and yen. Its rise can be attributed to a surge in US bond yields, which has gained 1.40%, rising to 2.16%.
There aren’t any significant data releases planned for the US session. There will be a JOLTS report on job openings in July, but this has never had a noticeable influence on the dollar’s dynamics. Traders and investors are more interested in how North Korea will react to the new tightening of sanctions as well as the consequences of Hurricanes Irma, Katia, and José.
Euro bears have successfully broken the intermediate support at 1.1946. The session low is at the 1.1926 mark. I think we can expect an upwards rebound from around 1.1900/05. This trend line runs through this level. After a brief consolidation period (around 40 hours), and a drop below 1.1900, sellers will have 1.1800/15 in their sights.