GBP/USD continues to gain ground on the hawkish tone from BoE officials.
BoE Chief Economist Huw Pill mentioned remaining firm in the battle against inflation.
US Dollar weakens on the speculations that the Fed might ease monetary policy in 2024.
GBP/USD trades around 1.2500 during the Asian session on Monday, attempting to extend gains for the third consecutive session. The GBP/USD pair received upward support from the hawkish tone of Bank of England’s (BoE) officials.
BoE Chief Economist Huw Pill, in a Financial Times (FT) interview on Friday, stated that the central bank will remain firm in its battle against inflation and emphasized that it cannot afford to loosen tight monetary policy. Additionally, BoE Governor Andrew Bailey’s recent hawkish comments highlighted the need for higher rates for an extended period.
The GBP/USD pair cheered up the positive PMI data from the United Kingdom (UK) released on Thursday. The UK business activity indicated signs of a turnaround, with the preliminary S&P Global/CIPS Services and Composite PMIs expanding in November after three consecutive months of contraction. The Services PMI and Composite PMI returned to expansionary territory, defying expectations of stagnation.
However, the Manufacturing PMI showed improvement, although it still lies below the expansion threshold. On the consumer front, GfK Consumer Confidence for November declined lower than expected.
US Dollar Index (DXY) extends losses despite US Treasury yields showing improvement. The 10-year US bond yield improves for the fourth successive session, and stays at 4.49%, by the press time.
Amid speculations that the US Federal Reserve (Fed) might ease monetary policy next year, recent comments from Fed officials last week have added nuance to the narrative. While there is speculation about potential policy easing, Fed officials have indicated the need for further tightening. Moreover, they emphasized that decisions will depend on incoming data, highlighting the importance of assessing economic indicators to take appropriate measures to address concerns related to inflation.
This week lacks any high-impact data release from the United Kingdom, market participants will likely focus on the speeches from Bank of England (BoE) officials. On the United States (US) docket, key indicators to watch include Gross Domestic Product Annualized (Q3), Core PCE – Price Index, and the ISM Manufacturing PMI.
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.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/gbp-usd-hovers-around-12500-with-a-positive-tone-amid-hawkish-boe-202311270219