Disappointment on US consumer inflation figures helped GBP/USD to pick up momentum midway through the session and lift up to 1.5653. Support was found around 1.5637 but there was no real drive to push any higher ahead of the release of the FOMC minutes.
The euro reversed its losses today and rallied by 0.5% against the US dollar. The turnaround came after a disappointing set of inflation figures from the US. Core inflation was held static with an annual rate of 1.8% in July.
The Australian dollar was under pressure again following a selloff in Chinese equities. The Shanghai composite dropped a further six percent on Tuesday – adding to the fall of over thirty percent that’s taken place since the summer.