GBP/USD attempts to regain ground, hovers around 1.2500
- GBP/USD gains ground as US Dollar retreats after two-day gains.
- US Jobless Claims declined to 209K from 233K prior; the UoM Consumer Sentiment Index reached 61.3 instead of the projected 60.5.
- UK Chancellor of the Exchequer, Jeremy Hunt outlined plans to reduce debt, cut taxes, and incentivize work.
GBP/USD strives to bounce back after its three-day winning streak paused in the previous session, trading marginally higher around 1.2500 during the Asian session on Thursday. The pair faced challenges in the previous session, influenced by the strengthened US Dollar (USD) following economic data releases from the United States (US). Investors seem to perceive persistent inflation in the US, coupled with a decelerating economy.
The US Dollar Index (DXY) retreats after hitting gains for two successive days, bidding lower around 103.70 at the time of writing. The Greenback continued its correction after releasing moderate US economic data but was losing momentum amid higher equity prices.
US Jobless Claims data on Wednesday indicated a larger-than-anticipated decline for the week ending on November 17, with Initial Claims dropping to 209K from 233K prior. Additionally, Durable Goods Orders in October experienced a greater decline than expected, falling by 5.4% compared to the anticipated 3.1%. However, the University of Michigan Consumer Sentiment Index for November surpassed expectations, reaching 61.3 instead of the projected 60.5.
Jeremy Hunt, the UK Chancellor of the Exchequer, unveiled the Autumn Statement, outlining plans to reduce debt, cut taxes, and incentivize work. He highlighted the collaboration with the Bank of England (BoE) to achieve the 2.0% inflation target by 2025, as projected by the Office for Budget Responsibility (OBR). Despite anticipating a positive impact on inflation and GDP, Hunt acknowledged a revised growth forecast, with GDP expected to grow by only 0.7%, down from the previous OBR projection of 1.8% in March.
The preliminary S&P Global/CIPS Purchasing Managers Index (PMI) data for November in the United Kingdom is set to be released on Thursday. Additionally, US markets will be closed on Thursday for Thanksgiving Day. On Friday, the US will release the preliminary S&P Global Manufacturing and Services PMI for November, with expectations of a decline.
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
