Pound Sterling Price News and Forecast GBP/USD: Inflation “apocalypse” priced in, GBP/USD has room to fall


UK CPI Preview: Inflation “apocalypse” priced in, GBP/USD has room to fall

Economists expect the headline UK Consumer Price Index (CPI) to have jumped from 7% YoY in March to 9.1% in April. I will argue that this leap is already baked into cable, leading to a ‘buy the rumor sell the fact’ effect, in which GBP/USD could actually reverse and fall following the release, contrary to expectations. Read more...

GBP/USD rallies into upper 1.24s post-strong UK jobs data, eyes 21DMA in 1.25s despite rising Brexit risk

Recent concerning headlines highlighting the rising risk that a spat over the Northern Ireland border into a fully-fledged trade war between the UK and EU has failed to dent sterling optimism, with GBP/USD holding in the upper 1.2400s for now as traders digest the implications of a super strong UK labour market report released earlier in the session. The pair has also shrugged off a just-released, stronger than expected US Retail Sales report for April, perhaps as it continues to also find support from a more buoyant tone to risk appetite on Tuesday. Read more...

GBP/USD

Overview
Today last price 1.2465
Today Daily Change 0.0146
Today Daily Change % 1.19
Today daily open 1.2319
 
Trends
Daily SMA20 1.2542
Daily SMA50 1.288
Daily SMA100 1.3198
Daily SMA200 1.3389
 
Levels
Previous Daily High 1.233
Previous Daily Low 1.2217
Previous Weekly High 1.2406
Previous Weekly Low 1.2155
Previous Monthly High 1.3167
Previous Monthly Low 1.2411
Daily Fibonacci 38.2% 1.2287
Daily Fibonacci 61.8% 1.226
Daily Pivot Point S1 1.2247
Daily Pivot Point S2 1.2176
Daily Pivot Point S3 1.2135
Daily Pivot Point R1 1.236
Daily Pivot Point R2 1.2401
Daily Pivot Point R3 1.2473

 

GBP/USD outlook: Sterling was lifted by upbeat UK jobs data and expectations for hawkish BoE

Cable extends rebound from new 2022 low into third straight day and accelerates recovery on Tuesday after upbeat jobs data. UK unemployment fell to 3.7% in March, the lowest since 1975, improving the sentiment on rising bets for BoE 50 basis points hike on June 16 policy meeting that would lift interest rate to 1.5%. Markets focus Wednesday’s UK CPI data on Wednesday with inflation expected to rise to a 40-year high at 9.1% in April from 7% in March that would add to BoE’s hawkish expectations and give fresh boost to the pound. Read more...

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