GBP/USD struggles to gain ground below 1.2750 ahead of US CPI, Fed rate decision
The GBP/USD pair trades with mild losses around 1.2740 during the early Asian session on Wednesday. Extended gains in the US Dollar (USD) amid the cautious mood weigh on the major pair. Investors will closely watch the US Consumer Price Index (CPI) inflation data, just few hours before the FOMC meeting.
The stronger US employment report last week dampened the expectation that the US Federal Reserve (Fed) will start cutting interest rates in September. Nonetheless, a softer-than-expected inflation report might influence Fed Chair Jerome Powell to maintain his stance of three interest rate cuts by the end of the year. This, in turn, might exert selling pressure on the Greenback. The US CPI figure is expected to show an increase of 3.4% YoY in May, while the core CPI is estimated to rise 3.5% YoY in the same report period. Read more…
GBP/USD Price Analysis: Consolidates around 1.2700 ahead of FOMC’s decision
The GBP/USD dropped during the North American session after employment data from the UK was weaker than expected, undermining the Pound Sterling. Therefore, the major trades at 1.2711, down 0.14%.
From a daily chart perspective, the GBP/USD remains neutral-biased, consolidating at around 1.2687-1.2750 ahead of Wednesday’s Federal Reserve monetary policy decision. Momentum suggests that buying pressure is fading, according to the Relative Strength Index (RSI), with sellers gathering traction. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-trades-with-a-mild-bearish-bias-near-12740-202406120404