Pound Sterling declines as BoE hike bets ease
GBP/USD loses ground for the third successive day, trading around 1.3520 during the Asian hours on Friday. The Pound Sterling (GBP) remains under pressure as traders pare back expectations for a Bank of England (BoE) rate hike, amid increasing optimism that tensions in the Middle East may be easing.
BoE Governor Andrew Bailey told BBC News on Thursday that the central bank is “not going to rush to judgments” on interest rate increases as global policymakers navigate an energy price shock driven by the Iran conflict. Bailey noted that while higher oil and gas prices will feed into inflation, other factors make rate decisions “very, very difficult.” Read more…
GBP/USD slips again as UK production data disappoints
GBP/USD gave up recent gains on Thursday, falling around 0.25% to settle close to 1.3525 after slipping back below the 1.3550 handle. Price drifted lower through the European and North American sessions in a steady grind rather than an impulsive move, with sellers leaning against intraday rallies. The pullback unwinds a portion of the rebound that followed Wednesday’s spike toward 1.3600, with candle structure showing persistent supply on bounces.
UK economic data came in mixed. Gross Domestic Product (GDP) rose 0.5% MoM in February against a 0.1% consensus, and the Index of Services printed 0.5% against 0.3% expected. However, Manufacturing Production slipped 0.1% MoM and contracted 0.5% YoY, missing forecasts on both reads, while Industrial Production YoY came in at negative 0.4% against a negative 0.9% consensus. The factory-sector softness offset the GDP beat and left Pound Sterling without a clear tailwind. Bank of England (BoE) Taylor is scheduled to speak twice in the London afternoon and evening. Read more…
GBP/USD slips as strong US jobs data offsets upbeat risk mood
The GBP/USD pair drops by 0.17% on Thursday as US jobs data outshone the UK Gross Domestic Product (GDP) report released during the European session. Meanwhile, expectations for a peace deal between the US and Iran keep the market mood upbeat. At the time of writing, the pair trades at 1.3534 after reaching a two-month high of 1.3594 earlier in the day.
Initial Jobless Claims in the US dipped from 218K to 207K in the week ending April 11, below forecasts for a 215K print. Although the print is good, the latest employment report and JOLTS data hint that the economy is in a low-hiring, low-firing mode. The Federal Reserve (Fed) reported that Industrial Production is slowing down, with the print dropping from 0.7% to -0.5% MoM in March. Motor vehicles, parts, and utilities fell the most, indicating that the economy is decelerating. Read more…
