Today’s trading is starting to remind me of the brutal chop after non-farm payrolls on Friday.
We’ve now seen two USD moves post-CPI and are in the midst of a third. It’s left the dollar back to where it started the trading day against the pound.
GBPUSD 5 mins
The rebound in cable comes with a sustained bid in Treasuries and a rebound in equities. The S&P 500 is up 0.1% and the Nasdaq up 0.2%. Helping those along might be the 3.3% decline in oil prices, adding to hopes that central banks will be looking at sub-2% inflation in short order, at least on headline metrics.
In the bigger picture, the daily chart indicates a market that’s lacking conviction after a small retracement from the November run-up. We’re in the final real trading week of the year so there might be more of a sideways slog from here.
GBPUSD daily