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 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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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.