GBP/USD gains momentum above 1.3050 area ahead of delayed US non-farm payrolls report
The GBP/USD pair is trading with moderate gains near 1.3060, snapping a four-day losing streak, during the early European session on Thursday. Markets may turn cautious later in the day ahead of the delayed September US Non-Farm Payrolls (NFP) report.
The UK CPI fell to 3.6% year-on-year in October from 3.8% in September, national statistics showed on Wednesday. This number was in line with market consensus. Inflation data reinforced expectations that the Bank of England may cut interest rates in December, which could undermine sterling in the near term. The upcoming government budget on November 26 is also expected to influence the Bank of England’s next move. Read more…
GBP/USD resumes decline ahead of US non-farm payrolls data
The GBP/USD pair came under a new round of downward pressure on Wednesday, falling by around two-thirds of one percent to the 1.3060 area. UK Consumer Price Index (CPI) inflation data released on Wednesday failed to spark an extended rebound in sterling flows, instead sending sterling offers to multi-week lows and marking a fourth consecutive bearish session.
The U.S. Bureau of Labor Statistics preemptively canceled the release of the October nonfarm payrolls report, citing a lack of data collection during the federal government shutdown. Price markets have already begun to rebound, reducing downward odds in December. According to the Chicago Mercantile Exchange’s FedWatch tool, the odds of the Fed cutting interest rates on December 10 have fallen to about 30%. Read more…
GBP/USD fell to 1.3120 as weak UK CPI boosted Bank of England easing expectations
The GBP/USD pair fell modestly on Wednesday as UK inflation fell in October, increasing the chance of a rate cut by the Bank of England in December. At the time of writing, the pair is trading at 1.3120 after reaching a peak of 1.3155.
The Office for National Statistics (ONS) revealed that the Consumer Price Index (CPI) fell from 3.8% to 3.6% year-on-year in October, as expected. The core CPI fell from 3.5% to 3.4% year-on-year, its lowest level since March. The British pound fell as investors grew more confident that the Bank of England may cut borrowing costs at its December meeting. Read more…
