GBP/USD gains traction above 1.3050 ahead of delayed US NFP release
The GBP/USD pair trades with mild gains near 1.3060, snapping the four-day losing streak, during the early European session on Thursday. Markets might turn cautious later in the day ahead of the release of the delayed US September Nonfarm Payrolls (NFP) report.
The UK Consumer Price Index (CPI) inflation fell to 3.6% YoY in October from 3.8% in September, the National Statistics showed on Wednesday. This figure came in line with the market consensus. The inflation data cemented expectations that the Bank of England (BoE) could cut interest rates in December, which could undermine the Cable in the near term. The upcoming government budget on November 26 is also expected to influence the BoE’s next move. Read more…
GBP/USD resumes slide ahead of stale US NFP data release
GBP/USD caught a fresh round of bearish pressure on Wednesday, falling around two-thirds of one percent into the 1.3060 region. UK Consumer Price Index (CPI) inflation data released on Wednesday failed to spark an extended recovery in Pound Sterling (GBP) flows, instead sending Cable bids into multi-week lows and chalking in a fourth consecutive down session.
The US Bureau of Labor Statistics has pre-emptively canceled the release of October’s Nonfarm Payrolls (NFP) report, citing a lack of data collection through the federal government shutdown. Rate markets are already recoiling, pricing down the odds of a December cut. According to the CME’s FedWatch Tool, the odds of a Federal Reserve (Fed) interest rate cut on December 10 have fallen to around 30%. Read more…
GBP/USD edges lower to 1.3120 as soft UK CPI boosts BoE easing outlook
GBP/USD edges modestly lower on Wednesday as inflation in the United Kingdom (UK) ticked lower in October, increasing the chance of an interest rate cut by the Bank of England (BoE) in December. At the time of writing, the pair trades at 1.3120 after reaching a peak of 1.3155.
The Office for National Statistics (ONS) revealed that the Consumer Price Index (CPI) dipped from 3.8% to 3.6% YoY in October, as expected. Core CPI slipped from 3.5% to 3.4% YoY, its lowest since March. The Pound Sterling (GBP) dipped as investors grew confident that the BoE may reduce borrowing costs at the December meeting. Read more…
