Pound Sterling Price News and Forecast: GBP/USD drifting ahead of US inflation
|GBP/USD outlook: Cable remains constructive above 200DMA but more action at the upside needed to confirm
Cable edged lower on sub-forecast Uk November earnings which adds to talks about possible rate cuts, although the BoE signals that cuts are still not on the table, with hawkish hold expected on Thursday’s policy meeting. Near-term structure remains positively aligned while the price stays above 200DMA (1.2491), but break above 10DMA (1.2608) is needed to generate positive signal and shift near-term mode from sideways to bullish.
Positive momentum on daily chart supports the notion, as larger uptrend from 1.2037 (Oct 4 low) is still intact. Caution on loss of lower pivots at 1.2491 (200DMA) and 1.2467 (Fibo 38.2% of 1.2037/1.2733) which would open way for deeper correction. Read more...
GBP/USD drifting ahead of US inflation
Tuesday’s UK employment report was notable for the decline in wage growth. Earnings excluding bonuses rose 7.3% in the three months to October, down from 7.8% in the three months to September. This was lower than the consensus estimate of 7.4%.
Wage growth is an important driver of inflation and the decline is an encouraging sign for the Bank of England. Still, earnings are rising much faster than inflation, which suggests that the BoE won’t be cutting interest rates anytime soon. Inflation has fallen to 4.6%, but this is more than double the Bank’s target of 2%. Read more...
GBP/USD clings to gains near daily peak after mixed UK jobs data, focus remains on US CPI
The GBP/USD pair gains some positive traction for the second straight day on Tuesday, albeit struggles to capitalize on the move and remains below the overnight swing high. Spot prices move little following the release of the UK monthly jobs data and hold steady around the 1.2580-1.2585 region, up over 0.25% for the day.
The UK Office for National Statistics (ONS) reported that the number of people claiming unemployment-related benefits rose to 16K in November as compared to the 20.3K anticipated. Adding to this, the previous month's reading was also revised down to 8.9K from the 17.8K reported originally. Read more...
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