GBP/USD touches fresh weekly highs

The GBP/USD pair edged higher for the second successive trading day, the pair is now testing the 20-day SMA.

The pair is rising on Monday and during the American session climbed to 1.1709, reaching the highest level since August 30. The pair has also been holding onto daily gains. In the UK, July’s growth data showed a recovery from the 0.6% June contraction with a 0.2% expansion; below expectations. On Tuesday labour data is due and the CPI on Wednesday.

The pound continues to recover from multi-year lows against the US dollar. It is testing the 20-day SMA and a consolidation above could open the doors to a more sustainable recovery.

The US dollar is sliding versus rival currencies on Monday hit by an improvement in risk sentiment and steady US yields. The Dollar Index is falling by 0.75%, hovering around 0108.15. The US 10-year yield stands at 3.28% and the 2*-year at 3.52%.

On Tuesday, August US CPI numbers are due. A 0.1% decline is expected on the monthly reading and a slide in the annual rate from 8.5% to 8.1%.