GBP/USD hovers around 1.2950, four-month highs ahead of UK GDP, factory data
GBP/USD continues its decline for the second straight session, trading near 1.2940 during Friday’s Asian session. The pair faces challenges as the Pound Sterling (GBP) struggles amid weakened risk sentiment, exacerbated by concerns over global trade after US President Donald Trump threatened a 200% tariff on European wines and champagne, unsettling markets.
Traders now await the UK’s monthly Gross Domestic Product (GDP) and factory data for January, set for release on Friday. Investors will closely watch the UK GDP figures as the Bank of England (BoE) has expressed concerns over the economic outlook. In its February policy meeting, the BoE revised its GDP growth forecast for the year to 0.75%, down from the 1.5% projected in November. Read more…
GBP/USD holds steady as markets look elsewhere
GBP/USD churned chart paper for a second day in a row, holding steady just south of the 1.3000 handle as Cable traders take a breather and watch market headlines broadly sail past the Pound Sterling. US Producer Price Index (PPI) business-level inflation eased faster than expected in February. However, markets never got the chance to experience any joy from the easing inflation figures as US President Donald Trump continues his campaign to spark a global trade war between the US and everybody else. Despite the ongoing geopolitical headlines, Cable markets remain relatively untouched by tariff talk as the UK skates by unnoticed.
Coming up on Friday, the US data docket will close out a relatively packed week with the University of Michigan (UoM) Consumer Sentiment Index as well as UoM’s Consumer Inflation Expectations. Both figures are likely to see some negative influence from President Trump’s tariff tirades, and median market forecasts see the sentiment index declining to 63.1 for March, down from February’s 64.7. At the last print, the average consumer respondent expected 5-year inflation to clock in around 3.5%, implying inflation expectations remain entrenched well above the Federal Reserve’s (Fed) 2% target. Read more…
GBP/USD holds steady near 1.2950 as traders brace for UK GDP data
The Pound Sterling (GBP) stayed firm at nearly 1.2950 against the Greenback on Thursday following the release of economic data from the United States (US). Inflation and jobs figures came in mixed but signaled that the economy remains solid. The GBP/USD pair trades at 1.2948, down 0.07%.
Data from the US showed that prices paid by producers were mainly aligned with estimates. The US Bureau of Labor Statistics (BLS) revealed that the Producer Price Index (PPI) in February came softer than the 3.3% expected at 3.2% YoY, down from the prior month’s 3.7%. Excluding volatile items, the so-called Core PPI increased by 3.4% YoY, beneath estimates of 3.5% and down from 3.6%. Read more…
