Pound Sterling Price News and Forecast: GBP/USD now risks extra losses
|GBP/USD refreshes session tops, around 1.4100 mark post-UK inflation figures
The GBP/USD pair refreshed daily tops in reaction to mostly upbeat UK macro data, with bulls now awaiting a sustained move beyond the 1.4100 mark.
The pair built on the previous day's goodish rebound from the 1.4035-30 region, or one-month lows and gained some positive traction through the first half of the trading action on Wednesday. A subdued US dollar demand was seen as a key factor that extended some support to the GBP/USD pair, which got an additional boost following the release of hotter-than-expected UK inflation figures. Read more...
GBP/USD now risks extra losses – UOB
The downward momentum in GBP/USD has improved in past sessions, noted FX Strategists at UOB Group.
24-hoour view: “Our expectation for GBP to ‘consolidate and trade between 1.4080 and 1.4140’ yesterday was incorrect as it plummeted to 1.4035 before snapping back up. While the outlook is mixed after the rapid swings, the underlying tone appears to be weak. From here, barring a break of 1.4125 (minor resistance is at 1.4100), there is scope for GBP to retest the 1.4035 support. The next support at 1.4000 is unlikely to come into the picture.” Read more...
UK annualized CPI beats estimates with 2.1% in May, GBP/USD tests 1.4100
The UK Consumer Prices Index (CPI) 12-month rate came in at +2.1% in May when compared to +1.5% booked in April while beating expectations of a +1.8% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) rose by 2.0% YoY last month versus +1.5% registered in April, matching the consensus forecast of +1.5%. Read more...
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