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GBP/USD drops towards 50-DMA after US data

FXStreet (Mumbai) - The USD made a comeback after cost of living stalled in September while the weekly jobless claims hit four decade low, pushing the GBP/USD lower towards its 50-DMA located at 1.5404 levels.

Treasury yields rise, USD strengthens

The uptick in the US core inflation and the drop in the jobless claims pushed the treasury yields higher. The 2-yr yield, which mimics rate hike expectations, advanced more than 3 basis points. The 10-year yield rose to 2.014%. Consequently, the US dollar extended gains across the board.

Earlier today, the pair made failed attempts to take out offers at 1.55, before falling below 100-DMA at 1.5484 before the CPI report. The pair now trades around 1.5430 levels, after having hit a session low of 1.5416.

GBP/USD Technical Levels

The immediate support is seen at 1.5404 (50-DMA), under which the losses could be extended to 1.5387 (Oct 13 high). A daily close below the same would expose 1.53 handle. On the other hand, 1.5484 (100-DMA), above which gains could be extended to 1.5568 (38.2% of Jul 14-Apr 15 plunge).

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