Pound Sterling Price News and Forecast: GBP/USD stages a modest recovery from a one-week low

GBP/USD sticks to modest recovery gains around 1.2630, upside potential seems limited

The GBP/USD pair attracts some buying during the Asian session on Friday and for now, seems to have snapped a two-day losing streak to a one-week low, around the 1.2615-1.2610 region touched the previous day. Spot prices currently trade around the 1.2630-1.2635 zone and remain at the mercy of the US Dollar (USD) price dynamics.

The US Personal Consumption Expenditures (PCE) Price Index released on Thursday showed that annual inflation in January was the lowest in three years and reaffirmed bets for an eventual rate cut by the Federal Reserve (Fed). This, in turn, fails to assist the USD Index (DXY), which tracks the Greenback against a basket of currencies, to capitalize on the previous day's bounce from a technically significant 200-day Simple Moving Average (SMA). Apart from this, the prevalent risk-on environment is seen as another factor undermining the Greenback's relative safe-haven status and lending some support to the GBP/USD pair. Read more...

GBP/USD extends its downside above the 1.2600 mark, US PMI data eyed

The GBP/USD pair extends its downside below the mid-1.2600s during the early Asian session on Friday. The renewed US Dollar (USD) demand above the 104.00 psychological mark drags the major pair lower. Investors will shift their focus to the final US S&P Global Manufacturing PMI for February. At press time, GBP/USD is trading at 1.2625, adding 0.01% on the day.

Data released from the US Bureau of Economic Analysis (BEA) on Thursday reported that the Personal Consumption Expenditure (PCE) Price Index eased from 2.6% to 2.4% YoY, in line with the market expectation. Additionally, the Core PCE, the Federal Reserve's (Fed) preferred inflation gauge, rose by 2.8% YoY in January compared to the December’s reading of. 2.9, matching with the consensus. Read more...