Pound Sterling Price News and Forecast: GBP retreats from weekly high ahead of US CPI, UK factory data

FXStreet Team FXStreet

GBP/USD Forecast: Bulls move to sidelines ahead of US December CPI

GBP/USD went into a consolidation phase above 1.2750 early Thursday after closing in positive territory on Wednesday. Although the upbeat market mood helps the pair hold its ground in the European session, investors could refrain from taking large positions ahead of the highly-anticipated US inflation report for December.

Wall Street's main indexes gathered bullish momentum mid-week and made it difficult for the US Dollar (USD) to find demand. US stock index futures were last seen rising between 0.3% and 0.5%, while the UK's FTSE 100 Index was up 0.5%, suggesting that risk flows continue to dominate the action in the European morning. Read more...

Pound Sterling retreats from weekly high ahead of US CPI, UK factory data

The Pound Sterling (GBP) has surrendered intraday gains as the market sentiment has been impacted amid volatility ahead of the United States Consumer Price Index (CPI) data, which will be published at 13:30 GMT. The broader appeal for the GBP/USD pair is still upbeat amid absence of commentary hinting at interest rate cuts from any Bank of England (BoE) policymakers. In the Asian session, GBP/USD printed a fresh weekly high amid deepening confidence of investors toward rate cuts by the Federal Reserve (Fed) from March is maintaining a cheerful market mood.

Further action in the Pound Sterling will be guided by the UK factory data, which is due to be released on Friday. Last month, UK Finance Minister Jeremy Hunt commented that the economy is not as bad as revised Gross Domestic Product (GDP) numbers for the third quarter would suggest. Read more...

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