Pound Sterling Price News and Forecast: GBP/USD remains confined in a familiar range
|GBP/USD consolidates below one-year top, looks to UK CPI for fresh directional impetus
The GBP/USD pair extends its sideways consolidative price move for the third successive day on Wednesday and trades around the 1.2970 region during the Asian session. Spot prices, meanwhile, remain well within the striking distance of a one-year peak touched on Monday and the fundamental backdrop supports prospects for an extension of a two-week-old uptrend.
The US Dollar (USD) draws some support from the upbeat US Retail Sales data released on Tuesday, which pointed to consumer resilience and bolstered economic growth prospects for the second quarter. This, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair as traders keenly await the crucial UK consumer inflation figures before positioning for the next leg of a directional move. Read more...
GBP/USD churns ahead of key UK CPI inflation data
GBP/USD churned close to recent highs on Tuesday as markets readjusted odds of a rate cut from the Federal Reserve (Fed). A decline in US Retail Sales capped off a recent batch of US data, implying price pressures have finally eased enough that the Fed may get pushed into a rate-cutting cycle in September.
US Retail Sales slumped to a flat 0.0% in June, matching forecasts and falling from the previous month’s revised 0.3%. Softening US Retail Sales was the final feather in the cap for rate-cut-hungry markets, which piled into bets of a rate cut when the Federal Open Market Committee (FOMC) gathers for its rate call on September 18. Read more...
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