GBP/USD surges to 1.2500 ahead of the UK CPI data

GBP/USD surges to the 1.2500 barrier on the softer USD.
The US headline Consumer Price Index (CPI) for October came in worse than the market consensus.
UK ILO Unemployment Rate remains unchanged at 4.2% in the quarter to September.
Traders will focus on the UK inflation data and the US Producer Price Index (PPI), Retail Sales.

Lallalit Srijandorn FXStreet

The GBP/USD pair edges higher during the early Asian trading hours on Wednesday. The weakening of the US Dollar (USD), backed by a fall in US Treasury bond yields, lends some support to GBP/USD. At press time, the major pair is trading around 1.2497, down 0.04% on the day.

The US headline Consumer Price Index (CPI) for October surges 3.2% YoY versus 3.7% prior, worse than the market consensus of 3.3%. The core CPI, which excludes volatile food and energy prices, rose by 0.2% MoM and 4.0% YoY. The market anticipates the Federal Reserve (Fed) will not raise the interest rate further in this cycle. According to the CME FedWatch Tool, fed fund futures have priced in 0% odds of a rate hike in the December meeting. This, in turn, exerts some selling pressure on the Greenback and lifts the GBP/USD pair.

On the other hand, Bank of England (BoE) Chief Economist Huw Pill said on Tuesday that there is significant progress on inflation. Huw further stated that they don't necessarily need to hike another rate but are prepared to if needed.

On Tuesday, the UK ILO Unemployment Rate remained steady at 4.2% in the quarter to September, matching the market estimation of 4.2%. Meanwhile, the number of people claiming jobless benefits rose by 17.8K in September from the previous reading of 20.4K.

Looking ahead, the UK Consumer Price Index (CPI) for October will be released. The monthly and annual UK inflation figures are expected to rise by 0.1% and 4.8%, respectively. The core CPI number is estimated to climb 5.8% YoY in October. On the US docket, the Producer Price Index (PPI) and Retail Sales will be due.

GBP/USD

Overview
Today last price	1.2498
Today Daily Change	0.0221
Today Daily Change %	1.80
Today daily open	1.2277

Trends
Daily SMA20	1.2205
Daily SMA50	1.2261
Daily SMA100	1.2518
Daily SMA200	1.2437

Levels
Previous Daily High	1.228
Previous Daily Low	1.2213
Previous Weekly High	1.2429
Previous Weekly Low	1.2187
Previous Monthly High	1.2337
Previous Monthly Low	1.2037
Daily Fibonacci 38.2%	1.2255
Daily Fibonacci 61.8%	1.2239
Daily Pivot Point S1	1.2233
Daily Pivot Point S2	1.219
Daily Pivot Point S3	1.2166
Daily Pivot Point R1	1.23
Daily Pivot Point R2	1.2324
Daily Pivot Point R3	1.2367

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.