GBP/USD oscillates around 1.2300 ahead of US Durable Goods Orders

The GBP/USD pair is juggling in a narrow range of 1.2259-1.2297 in the early European session as investors are awaiting the release of the US Durable Goods Orders. The US economic data is expected to release at 0.1% against the prior print of 0.5%.  

An underperformance is expected from the economic data, thanks to soaring price pressures, which have forced the Federal Reserve (Fed) to elevate its interest rates vigorously and eventually squeeze liquidity from the market. It is worth noting that the PMI figures reported by the IHS Markit last week were extremely lower than the forecasts and the prior prints. Now, lower estimates for the Durable Goods Orders are indicating that the economy is facing a slump in the overall demand structure.

This week, the US agencies will also report the Gross Domestic Product (GDP) numbers, which are due on Wednesday. The GDP numbers are expected to remain steady at -1.5% on a quarterly basis. While the GDP Price Index may slip to 7.2% from the prior print of 8.1%.

On the pound front, bulls are holding themselves despite a minor advancement in the Consumer Price index (CPI) at 9.1% on an annual basis. This has raised the odds of a 50 basis point (bps) rate hike by the Bank of England (BOE) in July. Earlier, the BOE elevated its interest rates by 25 bps only as the growth prospects were not lucrative to support a healthy rate hike announcement.