Pound Sterling Price News and Forecast: GBP/USD eases after soft CPI data

FXStreet Team FXStreet

GBP/USD outlook: Cable eases after soft CPI data but still lacks clearer direction signals

Cable fell to two-week low on Wednesday on softer than expected UK February inflation data that fuel expectations for BoE rate cut in May.

Fresh weakness pressure support at 1.2883 (20DMA / last Friday’s low) break of which to open way for deeper correction (dips from new multi-month high at 1.3014 were so far shallow) and expose next significant support at 1.2798 (200DMA / Fibo 23.6% of 1.2099/1.3014 rally). Read more...

GBP/USD Forecast: Pound Sterling looks vulnerable after soft inflation data

GBP/USD stays under bearish pressure in the European session on Wednesday and trades at around 1.2900. The pair could stretch lower in case 1.2880 support area fails. Pound Sterling weakens against its major rivals following the soft inflation readings from the UK.

The Office for National Statistics announced early Wednesday that the Consumer Price Index (CPI) rose 2.8% on a yearly basis in February. This reading followed the 3% increase recorded in January and came in below the market expectation of 2.9%. The core CPI, which excludes volatile food and energy prices, rose 3.5% in the same period, below analysts' estimate of 3.6%. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.