GBP/USD hovers below 1.2500 ahead of UK inflation data
GBP/USD floats around 1.2480 during the Asian session on Wednesday. The GBP/USD pair saw a notable surge of 1.79%, reaching the 1.2500 zone following the release of weaker US inflation data overnight.
The US Consumer Price Index (CPI) for October revealed lower-than-expected readings, with the annual rate slowing down from 3.7% to 3.2%, falling short of the consensus forecast of 3.3%. The monthly CPI also decreased from 0.4% to 0.0%. Read more...
GBP/USD surges to 1.2500 ahead of the UK CPI data
The GBP/USD pair edges higher during the early Asian trading hours on Wednesday. The weakening of the US Dollar (USD), backed by a fall in US Treasury bond yields, lends some support to GBP/USD. At press time, the major pair is trading around 1.2497, down 0.04% on the day.
The US headline Consumer Price Index (CPI) for October surges 3.2% YoY versus 3.7% prior, worse than the market consensus of 3.3%. The core CPI, which excludes volatile food and energy prices, rose by 0.2% MoM and 4.0% YoY. The market anticipates the Federal Reserve (Fed) will not raise the interest rate further in this cycle. According to the CME FedWatch Tool, fed fund futures have priced in 0% odds of a rate hike in the December meeting. This, in turn, exerts some selling pressure on the Greenback and lifts the GBP/USD pair. Read more...
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