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GBP/USD breaks above 1.5400 after US PPI, retail sales

FXStreet (Córdoba) - The dollar weakened across the board and sent GBP/USD to fresh 3-week highs after data showed US retail sales rose less than expected in September while PPI figures also came in below consensus.

GBP/USD broke above 1.5400 and rose to its highest level since Sep 22 at 1.5421. At time of writing, the pair is trading at 1.5405, recording a 1.05% gain on Wednesday and having already retraced previous day fall.

The pound was already on demand following the latest UK jobs report that helped to offset yesterday's CPI-led slump.

US data remains on the soft side

On the data front, retail sales rose a seasonally adjusted 0.1% in September below the 0.2% expected by analysts. Excluding vehicles, retail and food sales were down 0.3% in September against consensus of a 0.1% fall.

Meanwhile, producer price index fell 0.5% in September, while the so-called core PPI dropped 0.3% versus -0.2% and +0.1% expected respectively.

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