Pound Sterling Price News and Forecast: GBP/USD loses ground as traders adopt caution

FXStreet Team FXStreet

GBP/USD falls to near 1.3150 ahead of US PCE data

GBP/USD loses ground for the third successive session, trading around 1.3160 during the Asian hours on Friday. This downside could be attributed to the improved US Dollar (USD) following stronger-than-expected economic data released on Thursday. Investors await July’s US Personal Consumption Expenditure (PCE) Price Index scheduled to be released later in the North American Session.

The US Gross Domestic Product Annualized grew at 3.0% in the second quarter, exceeding both the expected and previous growth rate of 2.8%. Additionally, Initial Jobless Claims showed that the number of people filing for unemployment benefits fell to 231,000 for the week ending August 23, down from the previous 233,000 and slightly below the expected 232,000. Read more...

GBP/USD Price Forecast: Tumbles below 1.3200 as US Dollar recovers

The GBP/USD extended its losses to two straight days and cleared the 1.3200 figure on the downside, as bears woke up after August’s 400-pip rally, crushed their expectations for lower prices. Despite the lack of UK economic data, the docket remains busy across the pond, with goodish data bolstering the Greenback. Therefore, the pair trades at 1.3151, down 0.30%.

The GBP/USD daily chart hints that in the short-term, the pair could aim and test the latest cycle high witnessed on July 17, at 1.3043. Momentum has shifted in sellers' favor as the Relative Strength Index (RSI) peaked at overbought territory. However, it has finally retraced below the 70 level, spurring the major’s two-day pullback to current exchange rates. Read more...

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD sits at two-month lows near 0.6950 after Australian CPI data

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US core PCE inflation set to rise in August, pressuring the Federal Reserve

The United States Bureau of Economic Analysis will publish the Personal Consumption Expenditures Price Index data for August on Wednesday at 12:30 GMT. Market participants closely watch the PCE Price Index because it is the Federal Reserve’s preferred measure of inflation and could influence its policy outlook.

Silver is more volatile than Gold ahead of PCE and NFP. This chart shows the positioning gap

The market’s attention is focused on American data this week, but there’s something only those with a trained eye may be looking at: Gold and Silver positioning gap. Financial markets are moving on fears, mostly related to persistently high energy prices driven by the Middle East war. Sure, the US Dollar (USD) is strong, but at what cost?