|

GBP/USD maintains its position above 1.2300 major level ahead of US CPI

  • GBP/USD moves upward on divergence in viewpoints disclosed in the FOMC minutes.
  • US Dollar remains defensive despite robust wholesale inflation data.
  • US CPI suggests a decrease in the annual rate for September.

GBP/USD continues the winning streak that began last week, trading higher around 1.2310 during the Asian session on Thursday. Despite robust economic data from the United States (US), the pair is finding upward support on divergence in perspectives revealed in the Federal Open Market Committee (FOMC) minutes.

The FOMC minutes emphasized the significance of relying on data. There was a suggestion that achieving a substantial increase in inflation would be crucial to garnering consensus for shaping monetary policy decisions.

In September, the US Producer Price Index (PPI) experienced a rise, jumping from 2.0% to 2.2%, surpassing the expected 1.6%. Attention in the market now turns to Thursday's Consumer Price Index (CPI) release, with forecasts indicating a potential decrease in the annual rate from 3.7% to 3.6%. Keep an eye out for the upcoming weekly Jobless Claims report as well.

Amidst dovish comments and neutral stances from officials, investors seem to speculate the US Federal Reserve (Fed) to abandoning the idea of a rate hike. Fed Governor Christopher Waller advocates a cautious stance on rate developments, suggesting that tightening in financial markets "would do some of the work for us."

On the other hand, Fed Governor Michelle Bowman leans towards another rate hike, citing persistent inflation above the Fed's 2% target. These divergent views within the Federal Reserve add layers of complexity to the current economic landscape.

The US Dollar Index (DXY) is facing challenges, struggling to maintain ground at around 105.70 at the time of writing. This struggle is attributed to the subdued performance of US Treasury yields, with the 10-year Treasury bond yield standing at 4.57% by the latest update.

Market participants will likely keep an eye out for Gross Domestic Product and manufacturing data from the United Kingdom (UK).

UK Gross Domestic Product is predicted to print a positive figure of 0.2% in August, swinging from the previous 0.5% decline, while Manufacturing Production for the same period is seen declining 0.4% against the previous decline of 0.8%.

During the previous week, the British central bank revised down its growth forecast for the July-September period from 0.4% to a mere 0.1%, providing little indication of any inclination to pursue further rate increases.

GBP/USD: additional important levels

Overview
Today last price1.2314
Today Daily Change0.0000
Today Daily Change %0.00
Today daily open1.2314
 
Trends
Daily SMA201.2246
Daily SMA501.2487
Daily SMA1001.2604
Daily SMA2001.2442
 
Levels
Previous Daily High1.2337
Previous Daily Low1.2268
Previous Weekly High1.2262
Previous Weekly Low1.2037
Previous Monthly High1.2713
Previous Monthly Low1.2111
Daily Fibonacci 38.2%1.2311
Daily Fibonacci 61.8%1.2295
Daily Pivot Point S11.2276
Daily Pivot Point S21.2238
Daily Pivot Point S31.2207
Daily Pivot Point R11.2344
Daily Pivot Point R21.2376
Daily Pivot Point R31.2414

Author

Akhtar Faruqui

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.

More from Akhtar Faruqui
Share:

Editor's Picks

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows. 

Gold rebounds ahead of US ADP, will it last?

Gold finds renewed Asian bids and retests $5,230 early Wednesday after the heavy sell-off on Tuesday. The US Dollar stands tall amid escalating Middle East tensions and reduced dovish Fed expectations. Gold defends $5,000 or 50% Fibo level after facing rejection at the 78.6% Fibo resistance at $5,342 amid bullish RSI.  

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

Energy shock 2.0: Why rising Gas prices could hit the Euro

Even without a confirmed, sustained disruption, the mere risk to a key global energy chokepoint is enough to inject a significant premium into European Gas markets. And for the Euro, that matters.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.