GBP/USD rally breaks 1.3100 barrier amid soft US PPI data – by christianborjon GBPUSD Currencies Majors
l Reserve is closing to finishing its tightening cycle after June’s PPI and CPI data was softer than expected. The GBP/USD is exchanging hands at 1.3111 after hitting a daily low of 1.2979.GBP/USD accelerated its gains after the US Bureau of Labor Statistics revealed that prices paid by producers, also known as the Producer in June, rose below estimates, suggesting the deflation process in the US is gathering pace. PPI rose by 0.1% YoY, below forecasts of 0.4%, down ticked from May 1.1%.
At the same time, the BLS informed that Initial Jobless Claims for the week ending July 5 climbed less than estimates of 250K, standing at 237K. Even though the data portrays a tight labor market, investors ignored it, as the Fed’s primary focus remained on inflation. Despite the inflation downtrend continuing, the Federal Reserve is estimated to raise rates by 25 bps at the upcoming July meeting. However, bets for the rest of the year, paired as shown by November’s odds standing at 21%, according to CME FedWatch Tool.
On the UK front, the UK economy dodged a recession, as UK’s GDP growth for the last 3-months came at 0%, while month-over-month figures in May dropped -0.1%, trailing April’s 0.2% expansion. Although the economy didn’t grow, concerns of a recession loom, as theGBP/USD Price Analysis: Technical outlook
the GBP/USD is set to test the 2021 yearly low of 1.3160 after storming through the 1.3000 figure, which didn’t last long enough, to refrain buyers from committing to open fresh long bets, that would continue to edge higher. A decisive break above the former could put the 1.3200 figure on the table; otherwise, a healthy correction could send the pair dipping towards the 1.3100 psychological level before diving to July 12 daily high at 1.3000.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
GBP/USD hits 15-month peak amid UK jobs surge, USD weaknessGBP/USD rallied to a 15-month high of 1.2934 after a solid employment report in the United Kingdom (UK) increased the chances the Bank of England (BoE
Leer más »
GBP/USD jumps above the 1.2950 mark ahead of US inflation dataThe GBP/USD pair climbs above the psychological 1.2950 round mark and holds above that level in the early Asian session this Wednesday. The pair flirt
Leer más »
GBP/USD shifts its attention to the 1.3000 yardstick - UOBThere is scope for GBP/USD to revisit the key 1.3000 mark in the next few weeks, suggest, Economist Lee Sue Ann and Markets Strategist Quek Ser Leang
Leer más »
GBP/USD Forex Signal: Rising Wedge Pattern FormsThe GBP/USD pair jumped after the US published strong jobs numbers on Tuesday.
Leer más »
GBP/USD: Broadly bullish technical set up suggests gains may extend towards the 1.33 area – ScotiabankGBP/USD slips back from intraday high. Economists at Scotiabank analyze the pair’s outlook. Scope for losses is limited Intraday price action is refle
Leer más »
GBP/USD surges to 15-month peak at 1.3000 amid easing US inflationGBP/USD pair skyrockets to a 15-month high as cooling US inflation data curtails Dollar’s strength. Despite a potential 25 basis points rate hike in
Leer más »