GBP/USD hits fresh session lows under 1.2950 after US sales report

There have been a number of reactions to the better than forecast US sales data, just noted in the past couple of updates. Firstly Gold has fallen back on this news and the dollar has risen. As already mentioned that was led by a rise in the USD/JPY and that has dented the EUR/USD, which  in turn has pushed the GBP/USD lower. The Pound just hit a fresh session low on this news, at 1.2947. So, if the Pound is going to launch an effective strike on that 1.30 handle in the coming days it could ideally do with some higher UK inflation reports early tomorrow morning. That would fend off the growing belief that the BOE is about to embark on a rate cutting cycle. The calls for that to happen are growing louder by the day, despite words of caution from some MPC voting members. However, if the UK CPI and RPI reports tomorrow or not as benign as some seem to think they will be; that will be the catalyst that propels the GBP/USD above 1.30. For now though and as mentioned yesterday, it is a case of watching and waiting and right now the dollar has just gotten a bit more in the way of such a prospect. The GBP/USD is currently trading at 1.2948