UK inflation cools down Pound

Alexander Kuptsikevich FxPro

UK consumer inflation was weaker than expected. The annual rate of price increases slowed to 2.8% from 3.0%. It remains well above the local low of 1.7% recorded in September. The latest deceleration is still more of a hope than a signal that inflation is slowing, as the previous reading was the highest since March 2024.

However, the downside surprise may allow the Bank of England to return to cutting interest rates sooner and maintain the pace of quarterly cuts.

The GBP/USD reacted to the weaker-than-expected data by falling around 0.5% to 1.2885 before stabilising around 1.2900. Technically, the Pound is at risk of a correction (at least) after a 7.5% rally from the January lows. In the middle of last week, the GBPUSD stalled near 1.3000, clearly reluctant to cross the psychologically important line without fundamental support and amid accumulated local overheating.

Possible correction targets are 1.2800 and 1.2650. The 200-day moving average and 76.4% retracement level lie around the former. The 50-day average and 61.8% level cross the latter.

Author

Alexander Kuptsikevich

FxPro

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.