GBP/USD looks to approach 1.2750, focus on US PCE

GBP/USD trades higher around 1.2720 due to downbeat US economic data.
Investors turn cautious as they anticipate an interest rate hike by the BoE.
The retreating US Treasury yields continue to undermine the US Dollar (USD).

Akhtar Faruqui FXStreet

GBP/USD treads waters to continue the winning streak for the fourth consecutive day, trading higher around 1.2720 during the Asian session on Thursday. The pair is experiencing upward pressure due to the disappointing United States (US) macroeconomic data released on Wednesday.

After the recent release of the soft Job Openings report from the previous Tuesday, the August ADP National Employment Report showed weaker hiring than the projected 195K, contributing 177K jobs to the economy. This contrasts with the 371K jobs added in July. Preliminary Gross Domestic Product (GDP) reported at 2.1%, below the previous reading of 2.4%. The index was expected to remain consistent.

Investors anticipate a 25 basis points (bps) interest rate hike at the upcoming monetary policy meeting in September by the Bank of England (BoE), which could provide support to the GBP/USD pair. However, market participants are also adopting a cautious stance due to the potential impact of further monetary policy tightening on the United Kingdom’s (UK) economy.

US Dollar Index (DXY) struggles to snap a three-day losing streak, trading around 103.10 at the time of writing. The DXY reached its lowest in two weeks on Wednesday. The Greenback continues to face downward pressure due to downbeat US economic data and declining US Treasury yields. The yield on a 10-year US bond hit a bottom at 4.08% during the previous session, currently trading at 4.11%.

Investors will likely watch the upcoming data from the US scheduled to be released on Thursday, notably the US Federal Reserve’s preferred gauge for inflation, the Personal Consumption Expenditures (PCE), and further Initial Jobless Claims (Aug 25). These datasets are expected to have a substantial influence on shaping strategies before engaging in fresh trading positions on the USD/CHF pair.

GBP/USD: additional important levels

Overview
Today last price	1.2724
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.2721

Trends
Daily SMA20	1.2702
Daily SMA50	1.2781
Daily SMA100	1.2647
Daily SMA200	1.2411

Levels
Previous Daily High	1.2746
Previous Daily Low	1.2619
Previous Weekly High	1.28
Previous Weekly Low	1.2548
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2698
Daily Fibonacci 61.8%	1.2668
Daily Pivot Point S1	1.2645
Daily Pivot Point S2	1.2568
Daily Pivot Point S3	1.2517
Daily Pivot Point R1	1.2772
Daily Pivot Point R2	1.2823
Daily Pivot Point R3	1.29

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

AUD/USD drops to two-week low, further below 0.7000 after RBA's less hawkish rate hike

AUD/USD drifts lower for the second straight day on Tuesday, hitting a fresh two-week low during the Asian session after the Reserve Bank of Australia's (RBA) widely expected 25 bps rate hike. The decision was far from unanimous, with three members preferring to hold rates at 4.60%. This tempers expectations of further tightening, which, along with modest US Dollar strength, weighs on the currency pair.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.

Gold holds Monday’s gains near $3,950 on US-Iran deal hopes

Gold clings to previous day’s recovery around $3,945 in the Asian trade on Tuesday, as hopes of a deal between the United States and Iran have kept oil prices under pressure. Still, the Gold price is close to its yearly low of $3,870.23 posted on Friday.

XRP and XLM slide as bearish signal grows

Ripple (XRP) and Stellar (XLM) remain under pressure on Tuesday, with bearish momentum capping recovery attempts. XRP trades around $1.25 as sellers maintain control, while XLM extends its decline below $0.162, raising the risk of a deeper correction. Meanwhile, mixed derivatives data, bearish on-chain metrics and weakening technical indicators all hint at continued downside risk for both altcoins.

What a split Congress means for the US Dollar

The United States is going to the polls on Tuesday, and much is at stake. The mid-term elections mean the renovation of roughly one-third of the Senate and all 435 of the House seats. Additionally, special elections in Florida and Ohio will be held to fill the seats vacated by US Secretary of State Marco Rubio and Vice President JD Vance.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.