The Pound rises as the U.S Dollar softens following disappointing U.S inflation data. The headline Core CPI surprised investors and printed at 2.2% compared to the expected 2.4%. Keep in mind that the pair was able to form a new six-week high during yesterday's trading session signaling that sentiment surrounding Brexit is positive. For today, the main focus will be on Governor Carney's speech and traders will be looking to see what he has to say regarding the future of interest rates and the risks associated with the different Brexit scenarios. Additionally, the pair is being driven by U.S economic data, hence, traders need to also keep an eye on today's Retail Sales and Michigan Consumer Sentiment figures.
The pair has recently broke above the 1.30919 level paving the way for a rise towards the next resistance level at 1.32000. Investors need to watch what Governor Carney has to say about the future of the British economy, and a dovish rhetoric from the governor will not allow the pair to rise all the way towards the resistance level.
Support: 1.29981 1.29608
Resistance: 1.30919 1.32000