GBP/USD Forecast: Bulls move to sidelines ahead of US December CPI
GBP/USD went into a consolidation phase above 1.2750 early Thursday after closing in positive territory on Wednesday. Although the upbeat market mood helps the pair hold its ground in the European session, investors could refrain from taking large positions ahead of the highly-anticipated US inflation report for December.
Wall Street's main indexes gathered bullish momentum mid-week and made it difficult for the US Dollar (USD) to find demand. US stock index futures were last seen rising between 0.3% and 0.5%, while the UK's FTSE 100 Index was up 0.5%, suggesting that risk flows continue to dominate the action in the European morning. Read more...
Pound Sterling retreats from weekly high ahead of US CPI, UK factory data
The Pound Sterling (GBP) has surrendered intraday gains as the market sentiment has been impacted amid volatility ahead of the United States Consumer Price Index (CPI) data, which will be published at 13:30 GMT. The broader appeal for the GBP/USD pair is still upbeat amid absence of commentary hinting at interest rate cuts from any Bank of England (BoE) policymakers. In the Asian session, GBP/USD printed a fresh weekly high amid deepening confidence of investors toward rate cuts by the Federal Reserve (Fed) from March is maintaining a cheerful market mood.
Further action in the Pound Sterling will be guided by the UK factory data, which is due to be released on Friday. Last month, UK Finance Minister Jeremy Hunt commented that the economy is not as bad as revised Gross Domestic Product (GDP) numbers for the third quarter would suggest. Read more...
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 hovers around 0.6750 amid cautious mood
AUD/USD is treading water near 0.6750 in Asian trading on Monday. The pair struggles amid a cautious market mood, as traders remain wary of the French elections. However, a subdued US Dollar cushions the Aussie's downside.
USD/JPY drops toward 160.00 as risk aversion seeps back
USD/JPY is falling toward 160.00 in the Asian session on Monday, having failed to sustain at higher levels. A softer risk tone and encouraging Japanese Labor Cash Earnings data lift the Yen, weighing negatively on the pair.
Gold price tumbles as PBoC’s keeps Gold buying on hold
Gold price attracts some sellers during the Asian session on Monday. The precious metal loses traction as the People’s Bank of China, the Chinese central bank kept Gold buying on hold for the second month in June, according to official data released on Sunday.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin falls below $55,000 level
Bitcoin dropped below $56,552 on Sunday, disrupting market structure and signaling a bearish outlook. Ethereum and Ripple also revisited their support levels, slipping below critical thresholds, indicating a possible downtrend for these assets in the days ahead.
French election: It’s all over for Marine Le Pen, but the left weighs on the Euro
The deciding vote in the French Parliamentary elections closed this evening, and the exit poll suggests a shock result. The winning party is the left alliance, the popular front, which was pulled together to try and keep Le Pen’s far right National Rally party out of power.