GBP/USD strengthens to near 1.3550 as US Retail Sales data looms
The GBP/USD pair gathers to around 1.3545 during the early European session on Friday, bolstered by a weaker US Dollar (USD). Additionally, the stronger-than-expected UK economic data underpins the Pound Sterling (GBP) against the Greenback. Markets might turn cautious later on Friday as traders await the release of the US July Retail Sales report.
Traders adjusted their expectations for interest rate reductions from the US central bank after the latest soft data on US jobs and Consumer Price Index (CPI) inflation reports. Rising bets of a US Federal Reserve (Fed) rate cut in September weigh on the Greenback. However, hotter-than-expected Producer Price Index (PPI) inflation data released on Thursday prompted traders to trim wagers on rate cuts by the Fed in September. Read more…
GBP/USD snaps winning streak after hot US PPI inflation print
GBP/USD recoiled from rising US inflation metrics on Thursday, sending the US Dollar (USD) broadly higher and snapping a two-day winning streak in the Cable-Dollar pairing. GBP/USD saw its largest single-day decline in over two weeks, pushing the pair back toward 1.3500 after flubbing a technical push toward 1.3600.
Despite getting trimmed lower by around one-third of one percent, GBP/USD is still holding firmly onto the bullish side. Cable is still trading well above the 200-day Exponential Moving Average (EMA) near 1.3170, and immediate technical support is priced in at the 50-day EMA near 1.3440. Momentum has been a one-sided affair in favor of bidders, although the lower-highs patten baked into daily candlesticks is under threat of breaking down. Read more…
GBP/USD slips as hot US PPI data erodes aggressive Fed cut bets
The GBP/USD pair retreats during the North American session, down 0.21% after a hot inflation report in the United States (US) prompted traders to pare rate cut bets by the Federal Reserve (Fed) at the September meeting. At the time of writing, the pair trades at 1.3545 after hitting a daily peak of 1.3594.
The Producer Price Index (PPI) in the US rose 0.9% MoM in July, up from 0% in the previous month. However, the yearly reading rose 3.3%, exceeding forecasts of 2.5%, up from 2.3% of June’s print. Core PPI, which is used to calculate the Personal Consumption Expenditures (PCE) Price Index, soared 3.7% for the same period on an annual basis, crushing the prior month’s 2.6% jump. Read more…
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Stephania Antes