Pound Sterling Price News and Forecast: GBP ranges against USD ahead of US Q4 GDP, PCE inflation
|Pound Sterling ranges against USD ahead of US Q4 GDP, PCE inflation
The Pound Sterling (GBP) ticks slightly higher to near 1.2460 against the US Dollar (USD) in European trading hours on Thursday. The GBP/USD consolidates as the US Dollar turns sideways ahead of the advanced Gross Domestic Product (GDP) report for the fourth quarter of 2024, which will be published at 13:30 GMT. Economists estimate the US economy expanded 2.6% year-over-year (YoY), slower than the 3.1% growth seen in the third quarter of 2024.
Investors should brace for more volatility in the US Dollar as the Personal Consumption Expenditure Price Index (PCE) data for December is scheduled to be released on Friday. The PCE price index data will show the current status of inflation. The core PCE inflation, the Federal Reserve’s (Fed) preferred inflation gauge is estimated to have grown in December by 0.2%, faster than 0.1% in November on a month-on-month basis, with yearly figures rising steadily by 2.8%. Read more...
GBP/USD Forecast: Pound Sterling struggles to find direction after Fed
GBP/USD struggles to find direction and fluctuates in a tight band at around 1.2450 after closing virtually unchanged on Wednesday. The Federal Reserve's (Fed) monetary policy announcements fail to influence the US Dollar's (USD) valuation in a noticeable way as market focus shifts to US growth data.
The Fed said late Wednesday that it left the policy rate unchanged at 4.25%-4.5%. In the policy statement, the Fed removed the language suggesting inflation had "made progress" toward its 2% target and said the pace of price increases "remains elevated" instead. Read more...
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