GBP/USD Price Forecast: Constructive outlook prevails above 1.3300 area ahead of US PCE inflation data
The GBP/USD pair is trading flat near 1.3330 during Asian trading hours on Friday. Traders prefer to wait on the sidelines before the release of the headline US inflation report later on Friday. The delayed US Personal Consumption Expenditures (PCE) price index report for September could provide some hints about the path of the US interest rate.
Meanwhile, rising bets on an interest rate cut by the US Federal Reserve next week could weigh on the US dollar and create tailwinds for the major pair. According to the CME FedWatch tool, interest rate futures traders expect a roughly 89% chance of the federal funds rate being cut by a quarter of a percentage point by the Fed at its December meeting, to 3.50%-3.75%, up from just 63% a month ago. Read more…
GBP/USD is falling as the uptrend hesitates
The GBP/USD pair failed to make a technical move at the 1.3350 level on Wednesday, falling below a key technical level and paring some of the ground it gained during the strong rebound earlier in the week. The British pound (GBP) rose against the US dollar (USD), but the seven-session decline in the US Dollar Index (DXY) did not translate into individual gains on the cable chart.
The main event for December will be the Fed’s latest interest rate call scheduled for December 10. Markets remain fully committed to anticipating a third straight rate cut from the Fed on December 10. According to the Chicago Mercantile Exchange’s FedWatch tool, rate traders expect roughly 90% odds of a quarter-point rate cut next week. Official data sets are still far behind the curve, as federal agencies struggle to catch up after the longest U.S. federal government shutdown in history. Recent private data sets have indicated that the US labor market may collapse further as the end of the year approaches, keeping traders’ expectations for further interest rate cuts high. Read more…
GBP/USD shrugs off strong US employment data as traders remain committed to Fed easing
The British pound rose against the US dollar during the North American session on Thursday, although US jobs data indicated that the labor market remains strong, and expectations that the Federal Reserve will cut interest rates remain high. At the time of writing, GBP/USD is trading at 1.3367, up 0.12%, its highest level since the end of October.
Recently, US economic data revealed that the number of Americans applying for unemployment benefits fell below economists’ estimates for the week ending November 29. Initial jobless claims were 191,000, below estimates of 220,000 and down from last week’s upwardly revised numbers of 216,000 to 218,000. Read more…
