GBP/USD posts modest gains above 1.2650, focus on the Fedspeak

FXStreet
Updated May 17, 2024 06:19
Mitrade

■GBP/USD trades with a mild positive bias around 1.2670 on Friday. 

■Fed officials said it might take longer for inflation to reach their target, emphasizing the need to keep rates high for longer. 

■BoE’s Greene noted she wants more data on price pressures easing before it starts cutting its rate. 


The GBP/USD pair posts modest gains near 1.2670 during the early Asian session on Friday. Meanwhile, the USD Index (DXY) recovers some lost ground after retracing to multi-week lows near 104.00 in the previous session. The Federal Reserve (Fed) sticks to cautious tones regarding inflation and the chance of rate cuts this year. Investors will take more cues from the Fed’s Kashkari, Waller, and Daly speeches later in the day.

Several Fed officials emphasized the need to keep borrowing costs high for longer as they await more evidence that inflation is easing. On Thursday, Fed Bank of Atlanta President Raphael Bostic cautioned about the need for patience with interest rates, saying that there is still a lot of pricing pressure in the US economy. Cleveland Fed President Loretta Mester stated that it might take longer than expected to gain confidence about the path of inflation, adding that the Fed should hold its restrictive stance for longer. The cautious approach from the Fed policymakers has provided some support to the Greenback and weighs on the major pair. 

The number of Americans filing new claims for jobless benefits rose by 222K for the week ending May 11, the US Department of Labor (DoL) reported Thursday. The figure came in above the market consensus of 220K and below the previous reading of 232K gains. 

On the GBP’s front, the Bank of England (BoE) noted last week that the UK central bank needs to see more evidence that inflation will stay low, but he thought the inflation is moving in the right direction and a June cut cannot be ruled out. The BoE policymaker Megan Greene said the BoE wants more data on price pressures easing before it starts easing policy. The expectation that the UK central bank might cut the interest rate before the US Fed is likely to weigh on the Pound Sterling (GBP) and cap the upside of the GBP/USD pair in the near term. 


GBP/USD


Overview
Today last price 1.2671
Today Daily Change -0.0015
Today Daily Change % -0.12
Today daily open 1.2686
 
Trends
Daily SMA20 1.251
Daily SMA50 1.2593
Daily SMA100 1.2633
Daily SMA200 1.2541
 
Levels
Previous Daily High 1.2687
Previous Daily Low 1.2584
Previous Weekly High 1.2594
Previous Weekly Low 1.2446
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2647
Daily Fibonacci 61.8% 1.2623
Daily Pivot Point S1 1.2617
Daily Pivot Point S2 1.2549
Daily Pivot Point S3 1.2514
Daily Pivot Point R1 1.272
Daily Pivot Point R2 1.2755
Daily Pivot Point R3 1.2823

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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