- GBP/USD trading at 1.2556, experiencing minimal change amid a volatile session with a 90+ pip range.
- US Bureau of Labor Statistics (BLS) reports declining inflation in the US, with headline dipping, while core remains stickier at 4% YoY.
- The UK jobs market eases, after adding fewer employees than expected, while wages cooled down.
The GBP/USD is virtually unchanged amid a volatile session that witnessed the pair traveling at around 90 plus pip range, directionless after a report of inflation in the United States (US). Initially boosted the Pound Sterling (GBP), but in the end, the Greenback (USD) was bolstered. The pair is trading at 1.2556, almost flat.
GBP/USD is almost at around Tuesday’s open, as traders await central banks decisions
The major is trading within familiar ranges after the US Bureau of Labor Statistics (BLS) announced inflation is declining, even though monthly figures were slightly up in headline and core inflation. The Consumer Price Index (CPI) in November was 3.1% YoY but rose 0.1%, exceeding forecasts of 0%. The so-called core CPI met estimates of 4% YoY and monthly readings of 0.3%, up from October’s.
Earlier in the UK London session, the Office for National Statistics (ONS) revealed the jobs market is easing, with 50K new employees added to the workforce, though wages were lower than the 7.7% estimates, came at 7.2%.
Meanwhile, the US Dollar Index (DXY) resumed its downtrend after pairing earlier losses sustained on the US inflation report. The DXY is down 0.20%, at 103.88, while US Treasury bond yields remain flat.
In the meantime, the Federal Reserve would begin its two-day monetary policy meeting that would end tomorrow, with the statement release and the Chairman Jerome Powell press conference. Most market participants expect the Chair to push back against monetary policy easing.
On Thursday, it would be the turn of the Bank of England (BoE), with Governor Andrew Bailey and Co., estimated to deliver a hawkish hold and to keep rates unchanged.
Given the backdrop, the GBP/USD is expected to remain within familiar levels. Unexpected surprises would increase volatility in the pair, with only three weeks left to finish the year.
GBP/USD Price Analysis: Technical outlook
The daily chat portrays the pair is forming a doji, meaning that indecision lies amongst traders. Upside risks would emerge above today’s high of 1.2615, which could pave the way for testing 1.2700. Otherwise, if prices slump below 1.2518, could pave the way to test the 200-day moving average (DMA) at 1.2491.
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 retreats from multi-week highs, holds above 1.0800
After climbing to its highest level in over a month above 1.0850 with the immediate reaction to the April inflation data from the US, EUR/USD erased a portion of its daily gains and declined below this level. The improvement seen in risk mood, however, helps the pair hold its ground.
GBP/USD clings to daily gains above 1.2600
GBP/USD pulled away from the monthly high it set above 1.2650 but managed to stabilize in positive territory above 1.2600. The US Dollar stays under modest bearish pressure as markets assess the underlying details of the inflation report and how they could influence the Fed's rate outlook.
Gold stays above $2,360 after US inflation report
Gold trades modestly higher on the day above $2,360 in the American session. The data from the US showed that annual inflation edged lower to 3.4% in April as expected. The benchmark 10-year US Treasury bond yield stays in the red below 4.4%, allowing XAU/USD to keep its footing.
Ripple’s discounts for institutional clients stir debate among attorneys discussing SEC lawsuit
Ripple price consolidates in a tight range around $0.50 on Wednesday as the Securities and Exchange Commission (SEC) legal battle against payment-remittance firm Ripple intensifies with two key issues in focus this week.
US inflation and Retail Sales data add to pressure on Fed to signal rate cut
The US CPI report for April was mostly in line with expectations. The annual rate for headline price growth fell to 3.4% from 3.5%, while the core rate declined to 3.6% from 3.8%.