GBP/USD hangs near one-week low, looks to US macro data for fresh impetus
The GBP/USD pair continues losing ground for the second straight day – also marking the fourth day of a negative move in the previous five – and drops to over a one-week low during the Asian session on Friday. Spot prices currently trade around the 1.2735 region and seem vulnerable to slide further amid some follow-through US Dollar (USD) buying.
The hotter-than-expected US Producer Price Index (PPI) pointed to still-sticky inflation and cooled market expectations for early interest rate cuts by the Federal Reserve (Fed). This, in turn, led to the overnight rise in the US Treasury bond yields, which, along with a generally weaker tone surrounding the equity markets, is seen underpinning the safe-haven Greenback and exerting some downward pressure on the GBP/USD pair. Read more...
GBP/USD extends its downside below 1.2750, US data eyed
GBP/USD extends its downside around the mid-1.2700s during the early Asian trading hours on Friday. The major pair drops to multi-day lows near 1.2740 amid the rebound in the Greenback after strong US economic data. Later in the day, traders will monitor the preliminary US Michigan Consumer Sentiment for March, which is expected to remain steady at 76.9.
Data released from the US Census Bureau on Thursday revealed that US Retail Sales jumped 0.6% MoM in February from a downwardly revised -1.1% in the previous month, below the market consensus of a 0.8% m/m rise. The Retail Sales Control Group was flat at 0% MoM from the previous reading of a 0.3% MoM decline. Additionally, the PPI figure rose 0.6% MoM in February from 0.3% MoM in January, while the Core PPI figure climbed 0.3% MoM from a 0.5% gain in January. Read more...
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