Sterling fell more than 0.40% against the dollar on Tuesday, pushing GBP/USD to 1.3396, after firmer US inflation kept the prospect of a larger Federal Reserve move alive. Core CPI rose 0.3% month on month in October, above the 0.2% estimate, while headline CPI eased to 0.4% from 0.6% but still topped the 0.3% forecast. Fed Governor Christopher Waller said a 25 bps increase would require clearer improvement in inflation, whereas readings similar to recent months would support a 50 bps step. After his remarks, December pricing implied 85% odds of a 25 bps rise, and 55% also looked for another increase in January, according to the CME FedWatch Tool.
UK Economic Data And Outlook
In the UK, BRC Like-For-Like Retail Sales improved to 1.1% in October from 1.0%, undershooting the 1.2% forecast, while attention turns to Thursday’s GDP release, with Q3 growth seen at 0.7% quarter on quarter. On charts, GBP/USD remained capped below the 50-, 100- and 200-day SMAs clustered around 1.3453–1.3457, and hovered near descending trend-line support at 1.3375, with a lower floor around 1.3226. The RSI (14) stood near 51, pointing to neutral momentum, while resistance levels included 1.3700 and 1.3868.
