Cable spent the London morning drifting, printed the session low at 1.3381 shortly after 10:00 GMT, and then spent the New York afternoon repricing the entire Dollar complex.
The Pound trades near 1.3540 at writing, up better than 1% in one of its strongest sessions of the year, after tagging 1.3558 and clearing both the 200-day Exponential Moving Average (EMA) and the 1.3400 handle in a single afternoon
The move answers a month of indecision around those levels with the subtlety of a brick. The significance here is structural rather than cosmetic. The 50-day and 200-day EMAs sit clustered at 1.3376 and 1.3385, and most of July’s price action had been compressed between that band and the 1.3400 shelf, a coil that has now released in one direction.
A single session does not repair a downtrend that ran from late April into early July, but it does shift the burden of proof onto Dollar bulls for the first time in months. A producer-price print does the heavy lifting The June Producer Price Index (PPI) landed at 12:30 GMT with a headline monthly decline of 0.3% against expectations for a flat reading, while the annual rate slowed to 5.5% from 6%, undercutting the 6.2% consensus by a wide margin. The core measure missed as well, printing 4.7% YoY against 5.2% expected.