- GBP/USD edges higher amid subdued USD price action, though the upside seems limited.
- Expectations for more aggressive BoE policy easing undermine the GBP amid a bullish USD.
- Bulls also seem reluctant ahead of Thursday’s release of the US consumer inflation figures.
The GBP/USD pair trades with a mild positive bias around the 1.3075 area during the Asian session on Thursday, albeit it lacks bullish conviction and remains within the striking distance of a nearly one-month low touched the previous day.
The US Dollar (USD) consolidates its recent strong gains to the highest level since August 16 and continues to draw support from rising bets for a regular 25 basis points (bps) interest rate cut by the Federal Reserve (Fed) in November. The expectations were reaffirmed by the FOMC meeting minutes released on Wednesday, which showed a consensus that the outsized rate cut would not lock the central bank into any specific pace for future cuts. This keeps the yield on the benchmark 10-year US government bond elevated above the 4% threshold, or its highest level since July 31, which continues to underpin the buck and acts as a headwind for the GBP/USD pair.
Meanwhile, last week's dovish remarks by the Bank of England (BoE) Governor Andrew Bailey suggested that the central bank might be heading towards speeding up its rate-cutting cycle. This, in turn, might contribute to the British Pound's (GBP) relative underperformance and cap any meaningful upside for the GBP/USD pair. Traders might also prefer to wait for the release of the US consumer inflation figures, which along with the US Producer Price Index (PPI) on Friday, might influence expectations about the Fed's rate-cut path. This, in turn, will drive the USD demand in the near term and provide some meaningful impetus to the currency pair.
Heading into the key data risks, traders on Thursday might take cues from the BoE Credit Conditions Survey to grab short-term opportunities. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for the GBP/USD pair is to the downside, suggesting that any subsequent move up might still be seen as a selling opportunity. Spot prices seem poised to extend the recent sharp pullback from the 1.3435 area, or the highest level since March 2022 touched last month.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.04% | -0.05% | -0.06% | -0.03% | -0.17% | -0.44% | -0.00% | |
| EUR | 0.04% | 0.00% | -0.02% | -0.01% | -0.10% | -0.36% | 0.04% | |
| GBP | 0.05% | -0.00% | -0.02% | 0.00% | -0.18% | -0.37% | -0.01% | |
| JPY | 0.06% | 0.02% | 0.02% | 0.02% | -0.23% | -0.49% | -0.06% | |
| CAD | 0.03% | 0.00% | -0.01% | -0.02% | -0.15% | -0.36% | -0.01% | |
| AUD | 0.17% | 0.10% | 0.18% | 0.23% | 0.15% | -0.26% | 0.17% | |
| NZD | 0.44% | 0.36% | 0.37% | 0.49% | 0.36% | 0.26% | 0.36% | |
| CHF | 0.00% | -0.04% | 0.00% | 0.06% | 0.00% | -0.17% | -0.36% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD gathers strength to near 0.6550 on weaker US Dollar
The AUD/USD pair attracts some buyers to near 0.6540 during the early Asian session on Monday. The US Dollar Index (DXY) declines slightly after reaching a new two-year high despite the strong US S&P Purchasing Managers Index (PMI) data.
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Elections, inflation, and the bond market
The Federal Reserve believes inflation is no longer a concern for consumers and the time has come to ensure the rate of change of prices does not decline any further.
Read more
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.