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GBP/USD attracts some buyers near 1.2700, US PCE data looms

  • GBP trades in a positive territory for the third consecutive week under 1.2700.
  • US economy grew to 5.2% in Q3 from the previous reading of 4.9%, above the market consensus of 5.0%.
  • BoE Governor Bailey said the central bank will do what it takes to bring inflation down to its 2% target.
  • US Core PCE inflation data will be closely monitored by traders.

The GBP/USD pair attracts some buyers below the 1.2700 psychological mark during the early Asian session on Thursday. That being said, the softer US Dollar (USD) offers some support to the major pair. At press time, GBP/USD is trading near 1.2695, up 0.02% on the day.

The US Bureau of Economic Analysis (BEA) revealed on Thursday that the US economy grew to 5.2% in the third quarter (Q3) from the previous reading of 4.9%, above the market consensus of 5.0%. Federal Reserve (Fed) Governor Michelle Bowman said he sought to keep alive the possibility of more rate hikes, raising concerns about the longevity of inflationary pressure. Earlier this week, Fed Governor Christopher Waller stated that the Fed does not need to hike rates further from here.

Despite the mixed labor market and cooling inflation, investors will take more cues from the Core Personal Consumption Expenditure Price Index (PCE) for October. The monthly and annual Core PCE are expected to ease to 0.2% and 3.5%, respectively. These figures could convince the Fed of the coming Fed decisions.

On the UK’s front, Bank of England (BoE) Governor Andrew Bailey said on Wednesday that the central bank will do what it takes to bring inflation down to its 2% target, adding that the central bank has not seen the progress yet to be confident.

Looking ahead, traders will closely monitor the Core PCE inflation data, due later on Thursday. Additionally, the US weekly Jobless Claims, the Chicago PMI, and Pending Home Sales will be released. In the absence of top-tier economic data released from the UK docket, the GBP/USD pair remains at the mercy of USD price dynamics.

GBP/USD

Overview
Today last price1.2696
Today Daily Change0.0003
Today Daily Change %0.02
Today daily open1.2693
 
Trends
Daily SMA201.2435
Daily SMA501.2282
Daily SMA1001.2491
Daily SMA2001.2465
 
Levels
Previous Daily High1.2733
Previous Daily Low1.2665
Previous Weekly High1.2616
Previous Weekly Low1.2446
Previous Monthly High1.2337
Previous Monthly Low1.2037
Daily Fibonacci 38.2%1.2691
Daily Fibonacci 61.8%1.2707
Daily Pivot Point S11.2661
Daily Pivot Point S21.2629
Daily Pivot Point S31.2592
Daily Pivot Point R11.2729
Daily Pivot Point R21.2766
Daily Pivot Point R31.2798

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

More from Lallalit Srijandorn
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