GBP/USD drifts higher above 1.3300 on softer US Dollar, upbeat UK GDP data
The GBP/USD pair edges higher to around 1.3310 during the Asian trading hours on Friday. The Greenback weakens against the Pound Sterling (GBP) as downside surprises in the US economic data this week raise bets of more Federal Reserve (Fed) rate cuts this year. Traders will keep an eye on the preliminary University of Michigan Consumer Sentiment Index, along with the US Building Permits, Housing Starts, which are due later on Friday.
US producer prices unexpectedly declined in April as the cost of services fell by the most since 2009. The Bureau of Labor Statistics on Thursday revealed that the US Producer Price Index (PPI) rose 2.4% YoY in April versus 2.7% prior. This figure came in weaker than the market expectation of 2.5%. Additionally, the US Initial Jobless Claims for the week ending May 10 came in at 229K, compared to the previous week of 229K (revised from 228K). This reading matched initial estimates. Read more…
GBP/USD holds in consolidation pattern as data beats expectations on Wednesday
GBP/USD turned lower on Thursday, shaving off a few points and keeping bids stuck to a near-term consolidation range just south of 1.3300 as markets got more or less what they wanted from economic data releases during both the London and American market sessions. United Kingdom (UK) Gross Domestic Product and United States (US) Producer Price Index (PPI) inflation both beat the street, preventing markets from moving too far in either direction.
UK GDP growth for the first quarter came in stronger than expected, bouncing to a surprising 0.7% QoQ. On the US side, PPI inflation eased to just 0.1% MoM in April and giving investors to breathe a sigh of relief, at least for now, that tariff impacts haven’t hit headline economic data. Read more…
GBP/USD rises towards 1.3300 as UK economy grows above forecasts
The Pound Sterling extended its gains against the US Dollar, driven by a positive reading of economic growth in the UK and softer-than-expected data in the US, which fueled speculation of a slower economic outlook. At the time of writing, the GBP/USD trades at 1.3293, up 0.31%.
GBP/USD climbs as UK economy posts stronger-than-expected growth while US inflation and retail data disappoint. US economic data released earlier suggested that the disinflationary process continues as the economy cools. The US Producer Price Index (PPI) in April declined 0.5% MoM, below the estimated 0.2% expansion. Excluding volatile items, PPI fell 0.4% MoM beneath forecasts of a 0.3% increase. Read more…
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Randy Lupo