GBP/USD extends post-UK CPI decline, flirts with 1.2400 mark amid modest USD strength By HareshMenghani GBPUSD Inflation Brexit Fed Currencies
Having failed to conquer the 1.2500 psychological mark, the GBP/USD pair witnessed aggressive selling on Wednesday and snapped a three-day winning streak to a two-week high. The British pound weakened across the board after data released from the UK showed that the headline CPI soared to a 40-year high level of 9% in April. Given that the UK economic activity had slowed sharply during the first quarter, the data further fueled stagflation fears.
In the latest developments, the British government on Tuesday announced a bill that would effectively override parts of a Brexit deal. The European Commission had pledged to respond with all measures at its disposal if Britain moves ahead with a plan to rewrite the NI protocol. Investors now fear that the legislation could trigger a trade war in the middle of a surge in the cost of living, which would take its toll on the UK economy and validate the Bank of England's gloomy outlook.
With the latest leg down, the GBP/USD pair has eroded a major part of the overnight gains. That said, it will be prudent to wait for strong follow-through selling before confirming that the recent bounce from the 1.2155 region, or the lowest level since May 2020 has run its course and placing aggressive bearish bets.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
UK CPI Preview: Inflation 'apocalypse' priced in, GBP/USD has room to fallEconomists expect the headline UK Consumer Price Index (CPI) to have jumped from 7% YoY in March to 9.1% in April. I will argue that this leap is alre
Lire la suite »
Markets Week Ahead: Dow Jones, US Dollar, Oil, GBP/USD, AUD/USDRisk assets climbed going into the weekend, but it wasn't enough to pull major US indexes into positive territory. Traders are watching the wires for further clues on inflation and the global labor...
Lire la suite »
GBP/USD regains 1.2300 despite Brexit woes, BOE’s Bailey, focus on UK jobs, US Retail SalesGBP/USD regains 1.2300 despite Brexit woes, BOE’s Bailey, focus on UK jobs, US Retail Sales By anilpanchal7 GBPUSD Brexit BOE Employment RetailSales
Lire la suite »
EUR/USD Forex Signal: Ripe for a Major Bearish BreakoutThe EUR/USD pair declined slightly as concerns about the future of the European economy continued.
Lire la suite »
GBP/USD Price Analysis: 20-DMA probes bulls near 1.2500 ahead of UK inflationGBP/USD Price Analysis: 20-DMA probes bulls near 1.2500 ahead of UK inflation By anilpanchal7 GBPUSD Technical Analysis ChartPatterns Inflation SwingTrading
Lire la suite »
UK Jobs Preview: Why GBP/USD may offer an early selling opportunity, and whenHow will UK job figures impact GBP/USD? I think they will likely come out better than expected, as Britain's labor market remains strong despite the c
Lire la suite »