- GBP/USD lacked any firm directional bias and seesawed between tepid gains/minor losses.
- Mostly better-than-expected UK consumer inflation figures did little to impress the GBP bulls.
- Investors seemed reluctant to place any aggressive bets ahead of the key central bank events.
The GBP/USD pair extended its sideways consolidative price action and had a rather muted reaction to the UK consumer inflation figures.
The pair continued with its struggle to find acceptance above the 1.2900 mark and witnessed a modest intraday pullback on Wednesday, albeit lacked any follow-through and remained well within the previous day's trading range. Growing market fears of a no-deal Brexit held the GBP bulls on the defensive and capped the GBP/USD pair's recent recovery move from seven-week lows.
On the economic data front, better-than-expected UK consumer inflation figures extended some support to the British pound and helped limit any deeper losses. In fact, the headline CPI fell 0.4% in August as against -0.6% expected and rose 0.2% on a yearly basis. Meanwhile, core CPI decelerated to 0.9% YoY rate from 1.8% previous and beat market expectations of 0.6%.
Investors, however, seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of this week's key central bank events. The Fed is scheduled to announce its policy decision later this Wednesday. This will be followed by the BoE monetary policy update on Thursday, which will help determine the GBP/USD pair's near-term trajectory.
In the meantime, market participants will look forward to the release of the US Monthly Retail Sales figures for some short-term trading impetus later during the early North American session.
Technical levels to watch
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 clings to modest gains above 1.0650 ahead of US data
EUR/USD trades modestly higher on the day above 1.0650 in the early American session on Tuesday. The upbeat PMI reports from the Eurozone and Germany support the Euro as market focus shift to US PMI data.
GBP/USD extends rebound, tests 1.2400
GBP/USD preserves its recovery momentum and trades near 1.2400 in the second half of the day on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength against its rivals.
Gold flirts with $2,300 amid receding safe-haven demand
Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.