Last week’s high: $1.3110
Last week’s low: $1.2814
Fed Rate Hike Odds Dented by CPI Report
After struggling for much of last week the GBP/USD exchange rate rocketed higher on Friday as the US inflation report reduced the odds of the Federal Reserve increasing interest rates for a third time in 2017. CPI came in at 1.6% on the year, down from inflation of 1.9% in June, and sent the US Dollar tumbling. US retail sales also slumped, helping EUR/USD approach last week’s highs of $1.1487.
USD Outlook: Neutral/Negative
There isn’t much in the way of influential US data to look out for this week, so if US rate hike expectations remain depressed on the back of last week’s inflation and consumer spending reports, GBP/USD may be able to hold its stronger levels.
13:30 US Import/Export Price Index
15:00 US NAHB Housing Market Index
13:30 US Housing Starts
13:30 US Building Permits
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Senior Currency Broker
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