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.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold extends fragile recovery from multi-week low as softer bond yields weigh on USD

Gold builds on its intraday ascent through the first half of the European session, and recovers further from a near six-week low, touched the previous day. A modest pullback in US Treasury bond yields prompts some US Dollar profit-taking, which is seen offering support to the commodity. However, the Federal Reserve's hawkish outlook, along with escalating Middle East tensions, should limit deeper losses for the safe-haven Greenback and cap the non-yielding bullion.

Ripple, Cardano, Dogecoin: Downside risk looms amid market uncertainties

Top altcoins, including Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE), face imminent downside risk as prevailing upside momentum recedes toward neutral.

The Fed hawkishly hiked rates

The Fed proceeded with its first rate hike since 2023, as was widely expected. It should be noted that the bank hiked rates against US President Trump’s wishes. It’s characteristic that Fed Chair Warsh stated that 'Inflation is too high and has been for too long’, signalling his hawkish intentions.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.