GBP/USD may face challenges as traders adopt caution ahead of US CPI

GBP/USD maintains position around 1.2750 amid market caution as key economic figures loom

GBP/USD remains stable for the second consecutive day, trading around 1.2750 during the Asian session on Tuesday. The risk-sensitive pair could face challenges as the US Dollar (USD) continues to gain ground due to market caution ahead of the US Consumer Price Index (CPI) data scheduled to be released on Wednesday.

The Federal Reserve Bank of New York highlighted in its latest consumer survey summary that US consumers are navigating uncertain economic expectations. The survey indicated a sharp improvement in consumers’ outlook on their financial situations and the federal government’s fiscal condition, alongside a significant shift in expectations regarding debt affordability and credit conditions. Read more…

GBP/USD sticks to familiar territory ahead of a quiet week

GBP/USD paddled in a tight circle near 1.2750 on Monday, kicking off a new trading week by sticking close to where it ended the previous one. Key US Consumer Price Index (CPI) inflation data is due during the midweek market session. Pound Sterling traders can expect to fall on the mercy of broad-market sentiment with a crimped economic calendar on the UK side.

Monday was a low-key affair overall for Cable traders. Bank of England (BoE) Deputy Governor and head of Markets and Banking Sir Dave Ramsden noted early Monday that the BoE must remain “vigilant” in the face of increased uncertainty regarding the UK’s economic outlook. The BoE Deputy Governor’s word fell on mostly uninterested ears. Read more…