GBP/USD sticks to modest recovery gains around 1.2420-25 area, not out of the woods yet
The GBP/USD pair shows some resilience below the 1.2400 mark for the second successive day and attracts some buyers during the Asian session on Friday. Spot prices have now reversed a part of the previous day’s fall to over a three-month low and currently trade around the 1.2420-1.2425 region, up 0.10% for the day, though any meaningful recovery still seems elusive.
The US Dollar (USD) bulls opt to take some profits off the table after the recent rally to the highest level since March 9, which, in turn, is seen as a key factor lending some support to the GBP/USD pair. Against the backdrop of the optimism over more stimulus from China, the mostly upbeat Chinese macro data boosts investors’ confidence and prompts some selling around the safe-haven Greenback. Apart from this, a modest downtick in the US Treasury bond yields further undermines the buck, though expectations that the Federal Reserve (Fed) will stick to its hawkish stance should limit any meaningful downside. Read more…
GBP/USD treads waters above 1.2400, focus on US Consumer Sentiment Index
GBP/USD struggles to snap the previous day’s loss, hovering around 1.2410 during the early trading hours of the Asian session on Friday. The pair is experiencing downward pressure after the better-than-expected economic figures from the United States (US).
On Thursday, the Core Producer Price Index (PPI) for August increased by 2.2% as expected, and below the previous rate of a 2.4% hike. Retail Sales improved to 0.6% against the previous month’s 0.5% readings and the market consensus of slowdown to 0.2%. Read more…
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