Andrew Bailey

Softer United States inflation has reduced market expectations for an imminent Federal Reserve rate increase, keeping the US Dollar Index in consolidation beneath nearby resistance. EUR/USD and GBP/USD remain technically sensitive as traders watch whether euro and sterling strength can extend against the dollar.

GBP/USD retreated to around 1.3400 as traders assessed rising geopolitical risk, firmer energy prices, and a busy macro calendar. Technical traders are watching whether fading momentum opens the door to a move toward 1.3300 or whether buyers can reclaim 1.3500.