- GBP/USD is expected to display more weakness below 1.2420 as the focus shifts to BoE Bailey’s speech.
- The USD Index is facing barricades above 103.30 as the upside is capped due to further delay in US debt-ceiling issues.
- UK’s inflation is seen declining due to a fall in the oil price.
The GBP/USD pair looks vulnerable above the immediate support of 1.2420 in the early European session. The Cable is struggling in defending the nearest cushion as investors are awaiting the speech from Bank of England (BoE) Governor Andrew Bailey.
S&P500 futures are holding half of the gains added in Asia, portraying a mildly positive market mood. The US Dollar Index (DXY) is facing barricades above 103.30 as the upside is capped due to further delay in US debt-ceiling issues and the downside is being supported by hawkish commentary from Federal Reserve (Fed) policymakers.
The US Dollar Index (DXY) is expected to remain on the tenterhooks ahead of the preliminary S&P PMI figures (May). Manufacturing PMI is seen softening to 50.0 from the former release of 50.2. While Services PMI is expected to remain steady at 53.6. A second consecutive release of Manufacturing PMI above 50.0 would indicate that the manufacturing sector is coming out of the contraction phase.
On the Pound Sterling front, investors are awaiting the release of the United Kingdom’s Consumer Price Index (CPI) data. As per the preliminary report, the headline UK Consumer Price Index is seen at 8.3%, significantly lower than the prior release of 10.1% annually. Monthly headline CPI has shown a steady growth at 0.8%. Core CPI that excludes the impact of oil and food prices is expected to remain stable at 6.2%.
Going forward, the speech from BoE Andrew Bailey will remain in action. The speech from BoE’s Bailey is expected to provide the interest rate guidance for the monetary policy scheduled for June.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD pressures lows in the 1.0560 area after US data
EUR/USD turned south and tested fresh multi-month lows in the 1.0560 price zone in the second half of the day on Tuesday. Disappointing consumer confidence data from the US limits the US Dollar's gains, but the risk-averse market environment doesn't allow the pair to rebound.
GBP/USD struggles to gain traction, stays in red below 1.2200
GBP/USD stays in negative territory below 1.2200 on Tuesday as the US Dollar continues to find demand following a bearish opening in Wall Street. Meanwhile, the data from the US revealed that consumer confidence weakened further in September.
Gold challenges $1,900 after piercing September’s low Premium
Spot Gold accelerated its slide on Tuesday, with XAU/USD plummeting to $1,900.83, its lowest in almost two weeks. The US Dollar surged on the back of a worsening market mood at the beginning of the week, as investors got spooked by central banks’ pledges to keep rates higher for longer and dismal United States (US) data.
Shiba Inu inspired meme coin BONE notes first rise following the 55% crash in two months
Bone ShibaSwap, also known as BONE, is one of the few meme coins that had a positive run on Monday. The meme coin is slowly emerging into an entity of its own, provided it can attract enough users to fuel its long overdue recovery.
MULN enters first short-term uptrend in two months
Mullen Automotive (MULN), the micro-cap electric vehicle manufacturer out of Brea, California, has witnessed its stock enter a bullish uptrend for the first time since July 20.