British Pound drops to weekly lows below 1.3600 as US Dollar gathers momentum
The British Pound (GBP) extends losses for the second consecutive day on Thursday, as the US Dollar (USD) strengthens after the hot US inflation report released on Wednesday. The GBP/USD pair is trading at one-week lows at 1.3675 heading into the US session, opening more than 0.5% below Wednesday’s highs, in the mid-1.3600s.
US data released on Wednesday revealed that the Personal Consumption Expenditures (PCE) Price Index accelerated beyond expectations in July, with the yearly rate remaining steady at 3.7% against expectations of a mild decline. Likewise, core PCE inflation grew at a steady 3.3%, in both cases well above the Federal Reserve’s 2% target rate. Read more…
British Pound extends losses as US Dollar holds ground on Fed rate hike bets
GBP/USD remains subdued for the second successive day, trading around 1.3590 during the European hours on Thursday. The pair depreciates as the US Dollar (USD) remains stronger following the robust economic data released on Wednesday.
July’s PCE price index accelerated to 0.2% month-on-month, edging past the 0.1% consensus, while the annual rate remained at 3.7%, against the expected 3.6%. This surprise uptick has reinforced market bets that the Federal Reserve could deliver one final rate hike before year-end, leaving investors eagerly awaiting policy cues from Fed Chair Kevin Warsh’s speech at the upcoming Jackson Hole symposium. Read more…
British Pound languishes near weekly low, below 1.3600 as USD bulls await Warsh’s speech
The GBP/USD pair is seen consolidating near the lower end of its weekly range, below the 1.3600 mark, during the Asian session on Thursday. The downside, however, remains cushioned as traders look for more cues about the US Federal Reserve’s (Fed) interest rate path before placing fresh directional bets.
Data released on Wednesday showed that the US Personal Consumption Expenditures (PCE) Price Index rose 3.7% over the 12 months through July, unchanged from the previous month and slightly above consensus estimates. This pointed to still-sticky US inflation and backs the case for at least one Fed rate hike by the end of this year. The outlook, in turn, helps the US Dollar (USD) preserve the overnight gains and acts as a headwind for the GBP/USD pair. Read more…
