• Hotter-than-expected US PPI fails to provide any meaningful impetus.
• Investors seemed to hold back ahead of the key FOMC announcement.
The GBP/USD pair held on to its weaker tone through the early North-American session and had a rather muted reaction to the US economic data.
The latest UK CPI print added to the recent slew of disappointing UK macro releases and kept exerting downward pressure on the major on Wednesday. The selling pressure abated ahead of the 1.3300 handle, with the pair recovering around 30-pips from daily lows amid a modest US Dollar retracement.
A subdued action around the US Treasury bond yields failed to assist the greenback to preserve early gains and helped the pair to rebound from over one-week lows. The recovery bounce, however, struggled to gain any follow-through traction and was being capped by hotter than expected US PPI figures for May, coming in to show m/m rise of 0.3% and 3.1% on a yearly basis.
Moreover, investors also seemed to refrain from placing any aggressive bets ahead of today’s key event risk – the latest FOMC monetary policy update, which would play a key role in determining the pair's next leg of directional move.
Technical outlook
Valeria Bednarik, FXStreet's own American Chief Analyst writes: “The 4 hours chart for the pair favors additional declines ahead as, despite multiple attempts, it was unable to advance beyond a bearish 20 SMA, while technical indicators accelerate their slides below their mid-lines. A break below the daily low should lead to a continued advance towards 1.3265, while further weakness exposing the 1.3220 region.”
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.