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.

Lallalit Srijandorn FXStreet

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 price	1.2696
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.2693

Trends
Daily SMA20	1.2435
Daily SMA50	1.2282
Daily SMA100	1.2491
Daily SMA200	1.2465

Levels
Previous Daily High	1.2733
Previous Daily Low	1.2665
Previous Weekly High	1.2616
Previous Weekly Low	1.2446
Previous Monthly High	1.2337
Previous Monthly Low	1.2037
Daily Fibonacci 38.2%	1.2691
Daily Fibonacci 61.8%	1.2707
Daily Pivot Point S1	1.2661
Daily Pivot Point S2	1.2629
Daily Pivot Point S3	1.2592
Daily Pivot Point R1	1.2729
Daily Pivot Point R2	1.2766
Daily Pivot Point R3	1.2798

Author

Lallalit Srijandorn

FXStreet

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.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.