GBP/USD remains calm due to lowered UK inflation

GBP/USD maintains its position below 1.2650, focus on US GDP data

GBP/USD hovers around 1.2640 during the Asian hours on Thursday, attempting to recover its recent losses registered on Wednesday. The Pound Sterling (GBP) faced a challenge due to downbeat inflation from the United Kingdom (UK). Additionally, the US Dollar (USD) witnessed gains on improved economic data from the United States (US).

UK Consumer Price Index (CPI) (YoY) eased at 3.9% from the previous figures of 4.6%, against the expected readings of 4.4% in November. The CPI (MoM) dropped 0.2% MoM in November from a flat 0.0% in the previous reading and below the 0.1% estimated. The Core CPI (YoY) rose 5.1% versus 5.7% prior and the market consensus of 5.6%. Investors will further observe Gross Domestic Product and Retail Sales data scheduled to be released on Friday. Read more…

GBP/USD remains on the defensive below the mid-1.2600s ahead of US GDP data

The GBP/USD pair holds below the mid-1.2600s during the early Asian trading hours on Thursday. The downtick of the pair is backed by the weaker-than-expected UK inflation data and a modest recovery of the US Dollar (USD). At press time, the major pair is trading at 1.2638, up 0.08% on the day.

US consumers were more optimistic about the US economy in December. The US CB Consumer Confidence rose to 110.7 versus 101.0 prior (revised down from 102.0). Additionally, the annual rate of Existing Home Sales arrived at 3.82M in November, above the market consensus of 3.77M. Read more…