Pound Sterling Price News and Forecast: GBP/USD moves little for two successive day, trading around 1.3520
|GBP/USD treads water above 1.3500, stays muted after RICS Housing Price Balance
GBP/USD moves little for the second successive day, trading around 1.3520 during the Asian hours on Thursday. The pair holds steady after the United Kingdom’s (UK) RICS Housing Price Balance fell to -19% in August, its weakest level in nearly two years, down from -13% in July, as subdued buyer demand continues to pressure prices. The reading was worse than expected -10 reading for the same period.
The Pound Sterling (GBP) may hold its ground against its peers as traders expect the Bank of England (BoE) to hold interest rates steady at 4% in the monetary policy meeting in September. The upcoming UK GDP data, due Friday, is anticipated to reveal stagnant monthly growth following June’s 0.4% increase. Evidence of slowing economic momentum could reinforce market expectations for additional BoE rate cuts later this year. Read more...
GBP/USD continues to test 1.3550 as US CPI inflation print looms
GBP/USD caught a slim bullish step forward on Wednesday, testing the 1.3550 region for the fourth straight trading day, but thus far remains unable to make any further progress. US Producer Price Index (PPI) inflation eased lower in August, giving even further credence to the market’s expectations of a Federal Reserve (Fed) rate cut on September 17.
US PPI business-level inflation eased much faster than expected in August, with core PPI cooling to 2.8% YoY versus the last print of 3.5%. PPI inflation cooling off in these economic environments is hardly surprising: PPI metrics specifically exclude any imported or foreign trade goods entirely, giving a brief snapshot of domestic price pressures in the US. Read more...
GBP/USD holds near 1.3550 as soft US PPI boosts Fed cut bets
The GBP/USD hoovers around the 1.3550 figure for the third straight day after the latest inflation report in the United States (US) showed that prices paid by producers dipped in August, increasing the chances for an interest rate cut by the Federal Reserve.
The US Bureau of Labor Statistics (BLS) revealed that the Producer Price Index (PPI) in August edged lower from 3.3% to 2.6% YoY. Excluding volatile items like food and energy, the so-called core PPI cooled form 3.7% to 2.8% YoY. Although the data is bearish for the Dollar, looming Consumer Price Index (CPI) figures and Initial Jobless Claims data on Thursday, are awaited by investors who are weighing the chances of a small or big size cut by the Us central bank. Read more...
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