GBP/USD Price Forecast: Constructive view prevails above 1.3300 ahead of US PCE inflation data
The GBP/USD pair trades on a flat note near 1.3330 during the Asian trading hours on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation report later on Friday. The US delayed Personal Consumption Expenditures (PCE) Price Index report for September could offer some hints about the US interest rate path.
Meanwhile, rising bets for a rate cut by the US Federal Reserve (Fed) next week could weigh on the US Dollar (USD) and create a tailwind for the major pair. According to the CME FedWatch Tool, interest rate futures traders are pricing in a nearly 89% chance of a quarter percentage point cut in the Fed funds rate by the Fed at the December meeting, to 3.50%-3.75%, up from just 63% a month ago. Read more…
GBP/USD pulls back as bull run hesitates
GBP/USD flubbed a technical run at the 1.3350 handle on Wednesday, falling back below the key technical level and trimming some of the ground gained during a strong rebound earlier in the week. The Pound Sterling (GBP) has climbed against the US Dollar (USD), but a seven-session backlide in the US Dollar Index (DXY) has not translated into one-to-one gains on the Cable chart.
The key event for December will be the latest interest rate call from the Federal Reserve (Fed) slated for December 10. Markets remain fully committed to expecting a third straight interest rate trim from the Fed on December 10. According to the CME’s FedWatch Tool, rate traders are pricing in nearly 90% odds of a quarter-point rate cut next week. Official datasets are still lagging well behind the curve as federal agencies struggle to play catchup following the longest US federal government shutdown in history. Recent private datasets have teased that the US labor market could be crumbling further heading into the year’s end, keeping trader expectations of further rate cuts on the high side. Read more…
GBP/USD shrugs off strong US labor data as traders stay committed to Fed easing
The Pound Sterling (GBP) rises against the US Dollar (USD) during the North American session on Thursday, even though US jobs data suggests that the labor market remains solid, and the expectations that the Federal Reserve (Fed) will cut rates remain high. At the time of writing, the GBP/USD trades at 1.3367, up 0.12%, its highest level since the end of October.
Recently, US economic data revealed that the number of Americans filing for unemployment benefits dipped below economists’ estimates for the week ending November 29. Initial Jobless Claims came at 191,000, below estimates of 220,000 and a decrease from last week’s upwardly revised figures from 216,000 to 218,000. Read more…
