GBP/USD remains under pressure below the 1.2670 area, investors await UK inflation data, FOMC Minutes
The GBP/USD pair remains under pressure and trades in a negative territory for the fourth consecutive week. The major pair currently trades around 1.2665, down 0.23% for the day. The upbeat UK data fails to lift the Pound Sterling as investors are concerned about the possibility of a further rate hike that would impact the UK economy.
On Friday, the UK economy grew unexpectedly by 0.5% MoM in June, versus market consensus of 0.2% and a 0.1% decline in the previous month. Additionally, UK Industrial Production rose 1.8% on a monthly basis in June, above the expectation of a 0.1% increase and a 0.6% drop prior. Lastly, Manufacturing Output came in at 2.4% m/m, better than expected of 0.2% and 0.1% drop in the previous reading. Read more...
GBP/USD struggles to justify hawkish BoE concerns around 1.2700, UK inflation, FOMC Minutes in focus
GBP/USD remains pressured below 1.2700, close to 1.2690 by the press time, as it fails to cheer the UK’s heating inflation concerns and upbeat growth numbers amid economic fears and broad US Dollar strength ahead of the top-tier data/events. In doing so, the Cable pair justifies firmer US Treasury bond yields.
As per the latest survey from the UK’s Chartered Institute of Personnel and Development (CIPD), human resources executives expected to increase basic pay rates by a median of 5% – unchanged from the previous two quarters and the joint-highest readings since the survey started in 2012. The CIPD poll also adds that the public sector pay expectations rose to the record high of 4.0% from 3.3%. The same escalates pressure on the Bank of England (BoE) to lift the rates amid heating inflation. Read more...
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