GBP/USD bulls revisit close to the European highs ahead of US CPI – by fx_ross GBPUSD Currencies DollarIndex BOE
is also finding support on stronger-than-expected economic data in the UK of late and is leading investors to believe that the nation might just avoid a recession after all. Sterling has also benefitted from a softer US Dollar that has been pressured by the belief in markets that the Federal Reserve is coming towards the end of its rate hiking cycle.
´´Last week’s stronger than expected US labour market data underpinned the stickiness of wages and inflation pressures on the other side of the Atlantic,´´ analysts at Rabobank said. ´´As a result, the market withdrew some of the projected Fed easing that has been anticipated for the end of this year.´´
´´It is our view that there will be no easing in policy from the Fed until next year. We foresee some support for the USD in the coming months as 2023 rate cuts are fully priced out. We see scope for GBP/USD to push back to 1.22 on a 3-month view,´´ the analysts at Rabobank concluded. For the immediate future, we have the US inflation figures coming out today which will provide more direction on the world's largest economy's battle against inflation. ´´Core prices likely stayed firm in April, with the index rising a strong 0.4% MoM for a second straight month, as goods inflation likely continued to strengthen,´´ analysts at TD Securities said.
As for the Federal Reserve, with respect to this data release, the central bank has opened the door to a pause after hiking by 500bp. The Fed remains concerned about inflation being too high and will raise rates further if appropriate. The event is key as the Fed is highly data-dependent and going forward, the Fed has stated that policy will be considered on a meeting-to-meeting basis.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GBP/USD refreshes weekly high above 1.2650 as BoE prepares for a fresh rate hikeGBP/USD has printed a fresh weekly high at 1.2653 in the early European session. The Cable has shown a stellar rally and is expected to extend its ups
Read more »
GBP/USD: Rally could extend to 1.2665 – UOBIn light of the recent price action, GBP/USD could extend the uptrend to the 1.2660 region in the next few weeks, suggest Economist Lee Sue Ann and Ma
Read more »
GBP/USD Forex Signal: Strong Bullish Trend ContinuesMy previous GBP/USD signal on 18th April was not triggered as none of the key support or resistance levels were reached during the day\u2019s London session.
Read more »
Weekly Forex Forecast \u2013 NASDAQ 100 Index, EUR/USD, GBP/USD,The difference between success and failure in Forex / CFD trading is highly likely to depend mostly upon which assets you choose to trade each week and in which direction, and not on the exact methods you might use to determine trade entries and exits.
Read more »
GBP/USD: Hawkish BoE hike may keep Cable in the ascendancy – SocGenGBP/USD resumed trading above 1.26. Economists at Société Générale expect Cable to remain elevated on a hawkish Bank of England (BoE) this week. A thr
Read more »
GBP/USD retreats after hitting YTD high despite looming BoE’s decisionThe GBP/USD retreats after hitting a new year-to-date (YTD) high of 1.2668 after the US Federal Reserve (Fed) reported the Senior Loan Officer Opinion
Read more »