Pound Sterling Price News and Forecast: GBP falls as annual UK factory data underperform

GBP/USD Forecast: Pound Sterling stabilizes above key support

GBP/USD reversed its direction after dipping below 1.2700 and closed in positive territory above 1.2750 on Thursday. The positive shift seen in risk mood supports the pair on Friday as markets await Producer Price Index (PPI) data from the US.

The data from the US showed on Thursday that the Consumer Price Index (CPI) increased 3.4% on a yearly basis in December, coming in above the November print and the market expectation of 3.1% and 3.2%, respectively. The Core CPI, which excludes volatile food and energy prices, rose 0.3% on a monthly basis. Read more...

Pound Sterling falls as annual UK factory data underperform

The Pound Sterling (GBP) faces a correction after the United Kingdom Office for National Statistics (ONS) reported mixed factory data for November. Monthly growth in the manufacturing sector was slightly higher while annual data failed to match expectations. Overall economic data was slightly better than expectations but seems incapable of taming fears of a technical recession happening in the UK economy.

Going forward, the Pound Sterling will be guided by the labor market and inflation data, which are due to be released next week. Cooling labor market conditions and a further decline in price pressures will deepen hopes of a dovish interest rate outlook from the Bank of England (BoE) in its first monetary policy announcement of 2024 on February 01. Read more...

GBP/USD gathers strength to a weekly high near 1.2780, eyes on UK GDP, US PPI data

The GBP/USD pair gains ground to nearly the weekly high during the early Asian trading hours on Friday. The November UK Gross Domestic Product (GDP) is estimated to grow by 0.2% MoM from the 0.3% contraction in the previous reading. GBP/USD currently trades near 1.2780, gaining 0.16% on the day.

The Bank of England (BOE) Governor Andrew Bailey had forecast a tough battle lay ahead to bring inflation back to its 2% target while pushing back against speculation about cutting rates. Nonetheless, a decline in energy prices might bring inflation down at a faster rate than the BOE expected. The UK central bank may be forced to provide the timeline of its first interest rate cut after three leading forecasters issued a surprise update suggesting the inflation rate will halve to 2% by April. Read more...