• The GBPUSD clings to gains of 0.24% as the North American session begins.
  • Federal Reserve hawkish commentary continued, though market sentiment is upbeat.
  • Retail Sales in the United Kingdom climbed above estimates, a tailwind for the GBP.
  • Traders eye US Existing Home Sales and Fed speak.

The British Pound (GBP) edges north of 1.1880 amidst a risk-on impulse, as shown by equity futures in the United States climbing with no fundamental reason after a slew of Federal Reserve (Fed) officials signaled rates would continue to rise. At the time of writing, the GBPUSD is trading at 1.1882, above its opening price by 0.35%, capitalizing on broad US Dollar (USD) weakness.

Sentiment turned positive as North American traders waited for US economic data on Existing Home Sales. Given that the last two inflation reports in the United States, namely the Consumer Price Index (CPI) and the Producer Price Index (PPI) propelled an improvement in market sentiment, Fed policymakers pushed against a possible Fed pivot. St. Louis Fed President James Bullard said that interest rates are not “sufficiently restrictive” and added that would be if the Federal Funds rate (FFR) hit the 5% to 5.25% area.

Echoing his comments, Minnesota’s Fed President Neil Kashkari says that one-month data can’t over-persuade the Fed, as it needs to keep at it until they’re sure that inflation has stopped climbing. On Friday, the Boston Fed President Susan Collins noted that the Federal Reserve needs to continue hiking rates, adding that rates will need to keep high for some time.

Earlier in the European session, the United Kingdom (UK) calendar featured Retail Sales, which surprisingly were above forecasts, even though the Bank of England (BoE) acknowledged the UK economy entered a recession. Retail Sales for October rose by 0.6% MoM against 0.3% estimates, while excluding volatile items, grew by 0.3% MoM, less than 0.6% forecasts. On an annual pace, both readings contracted less than estimates but remained negative.

Meanwhile, traders continue to asses a 4-decade high inflation level reached in the UK. The Consumer Price Index (CPI) expanded by 11.1% YoY in October, and above the Bank of England projections that inflation would peak at around 10.9%. As shown by STIRs, money market futures estimates an 82% chance that the Bank of England would hike 50 bps to 3..50%.

Furthermore, the UK Finance Minister Jeremy Hunt announced a £55 billion budget, plagued by tax rises and spending cuts. The budget is split between £30 billion in spending cuts and £25 billion in tax rises. However, most spending cuts are penciled in after the next election, due on January 2025.

GBPUSD Key Technical Levels

GBP/USD

Overview
Today last price 1.1892
Today Daily Change 0.0029
Today Daily Change % 0.24
Today daily open 1.1863
 
Trends
Daily SMA20 1.1555
Daily SMA50 1.1364
Daily SMA100 1.1647
Daily SMA200 1.2232
 
Levels
Previous Daily High 1.1958
Previous Daily Low 1.1762
Previous Weekly High 1.1855
Previous Weekly Low 1.1291
Previous Monthly High 1.1646
Previous Monthly Low 1.0924
Daily Fibonacci 38.2% 1.1837
Daily Fibonacci 61.8% 1.1883
Daily Pivot Point S1 1.1764
Daily Pivot Point S2 1.1666
Daily Pivot Point S3 1.1569
Daily Pivot Point R1 1.196
Daily Pivot Point R2 1.2056
Daily Pivot Point R3 1.2155

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD: Is the US Dollar corrective decline over?

EUR/USD: Is the US Dollar corrective decline over? Premium

The EUR/USD pair ended a three-week losing streak, recovering towards 1.0600 before finally finding sellers. The US Dollar (USD) gapped lower at the weekly opening after reaching fresh 2024 highs against its European rival, with EUR/USD bottoming at 1.0332 on November 22.

Read full analysis
GBP/USD: Pound Sterling rebounds, not out of the woods yet

GBP/USD: Pound Sterling rebounds, not out of the woods yet Premium

The Pound Sterling (GBP) snapped a two-week downtrend and staged a comeback against the US Dollar (USD), driving the GBP/USD pair back to the 1.2700 threshold.

Read full analysis
Gold: Easing geopolitical tensions trigger profit-taking

Gold: Easing geopolitical tensions trigger profit-taking Premium

Gold (XAU/USD) declined sharply on easing geopolitical concerns on Monday and spent the rest of the week trying to recover its losses. Employment-related macroeconomic data releases from the US could alter the expectations about the Federal Reserve’s policy decision in December and trigger the next big action in XAU/USD. 

Read full analysis
Bitcoin: A healthy correction

Bitcoin: A healthy correction

Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K. 

Read full analysis
US Dollar flat ahead of weekend full of uncertainties over France's budget

US Dollar flat ahead of weekend full of uncertainties over France's budget

The US Dollar (USD) is recovering with the US trading session opening on Black Friday. The rally in the Euro which was weighing on the US Dollar and the US Dollar Index (DXY), is fading at the start of the US trading session.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures