GBP/USD remains depressed near 1.3800 ahead of US inflation
- GBP/USD trades cautiously on Friday in the Asian trading hours.
- The US dollar falls below 93.50 following dismal US GDP figures.
- UK budget, Brexit, and hawkish BOE entertain the pound traders.
GBP/USD remains firm during the Asian session on the last trading day of the week. The pair managed to gather momentum, following the previous session. At the time of writing, GBP/USD is trading at 1.3800, up 0.01% for the day.
The sterling keeps its foot firmly against the majors amidst the broad-based USD selling. The greenback gauge dropped the most since October 13 the previous day after the US Q3 Gross Domestic Product (GDP) fell below the 2.7% forecast to 2.0%, much lower than the previous reading of 6.7%. Investors assessed the downbeat GDP data as a hint that could push the Fed to slow down on its monetary policy normalization hustle.
In addition to that, UK Chancellor Rishi Sunak’s multi-billion pound 2021 budget and the hawkish Bank of England (BOE) seem to support the move in the currency.
The Brexit-led pessimism, however, limits gains in sterling. As per the BBC, France has seized a British trawler and another has been fined amid an escalating row over post-Brexit fishing rights.
As for now, traders keep their focus on the BOE Consumer Credit, Mortgage Lending and US Personal Consumption Expenditures-Price Index to gauge market sentiment.
GBP/USD technical levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
