GBP/USD hovers below 1.2500 ahead of UK inflation data


  • GBP/USD recorded a notable surge of 1.79% in the last trading session.
  • US CPI eased at 3.2% from 3.7%; Core CPI rose 0.2% against the expected 0.3%.
  • BoE may hold off on making any policy adjustments if UK inflation follows the anticipated slowdown.

GBP/USD floats around 1.2480 during the Asian session on Wednesday. The GBP/USD pair saw a notable surge of 1.79%, reaching the 1.2500 zone following the release of weaker US inflation data overnight.

The US Consumer Price Index (CPI) for October revealed lower-than-expected readings, with the annual rate slowing down from 3.7% to 3.2%, falling short of the consensus forecast of 3.3%. The monthly CPI also decreased from 0.4% to 0.0%.

In terms of the US Core CPI, it saw a rise of 0.2%, below the expected 0.3%, and the annual rate eased to 4.0% from the previous 4.1%.

The Dollar Index (DXY) moves sideways near 104.10 at the time of writing, after the substantial losses recorded in the previous session. The index dropped by 1.50%, reaching its lowest level since early September.

The US Dollar (USD) found itself under added strain due to heightened risk appetite and a downward trajectory in US Treasury bonds. The US 10-year yield took a notable dip, hitting an eight-week low at 4.43%.

On Tuesday, the GBP/USD pair witnessed strength following the mixed employment data from the United Kingdom (UK). UK Claimant Count Change reduced to 17.8K in October compared to the 20.4K prior. Claimant Count Rate was maintained at 4.0%. Employment Change saw a decline of 207K in September against the 82K decline previously. Moreover, the UK ILO Unemployment Rate (3M) remained consistent at 4.2% in September.

Wednesday is set to bring forth crucial UK inflation data and Retail Sales figures. The market will be keeping a close eye on these numbers, and if inflation follows the anticipated downward trend, it might keep the Bank of England (BoE) from making any immediate changes to its monetary policy.

GBP/USD: Additional important levels

Overview
Today last price 1.2483
Today Daily Change -0.0019
Today Daily Change % -0.15
Today daily open 1.2502
 
Trends
Daily SMA20 1.2221
Daily SMA50 1.226
Daily SMA100 1.2516
Daily SMA200 1.2439
 
Levels
Previous Daily High 1.2506
Previous Daily Low 1.2266
Previous Weekly High 1.2429
Previous Weekly Low 1.2187
Previous Monthly High 1.2337
Previous Monthly Low 1.2037
Daily Fibonacci 38.2% 1.2414
Daily Fibonacci 61.8% 1.2357
Daily Pivot Point S1 1.2343
Daily Pivot Point S2 1.2184
Daily Pivot Point S3 1.2102
Daily Pivot Point R1 1.2583
Daily Pivot Point R2 1.2665
Daily Pivot Point R3 1.2824

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD slides to multi-month lows near 1.0650

EUR/USD slides to multi-month lows near 1.0650

EUR/USD stays under heavy bearish pressure and trades at its lowest level since November near 1.0650. Divergent ECB-Fed policy outlooks keep the US Dollar strongly bid ahead of the US sentiment data and Fedspeak. 

EUR/USD News

GBP/USD extends decline below 1.2500 on sustained USD strength

GBP/USD extends decline below 1.2500 on sustained USD strength

GBP/USD extends losses below 1.2500, struggling even after the January month UK GDP was revised higher to 0.3% while the UK industrial sector showed robust growth. Resurgent US Dollar demand and geopolitical tensions keep the pair undermined. 

GBP/USD News

Gold price taps on $2,400 for the first time on record

Gold price taps on $2,400 for the first time on record

Gold price tests $2,400 for the first time on record, scaling new lifetime highs amid persistent geopolitical tensions. The upsurge seems unaffected by reduced Fed rate cut bets and bullish USD. Extremely overbought conditions might prompt some profit-taking around the metal.

 

Gold News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Rich Dad Poor Dad author Robert Kiyosaki says he will not buy Bitcoin ETFs. Kiyosaki stated his dislike for Wall Street’s financial products and preferred packaging his own. 

Read more

US banks in focus, as earnings season gets underway

US banks in focus, as earnings season gets underway

Today sees the big banks kick off earnings season in the US, with JP Morgan Chase, Wells Fargo, Blackrock, Citigroup, and State Street all reporting before the bell.

Read more

Forex MAJORS

Cryptocurrencies

Signatures