GBP/USD remains capped below 1.2470, eyes on US data

Source Fxstreet
Apr 18, 2024 00:40
  • GBP/USD edges lower to 1.2450 in Thursday’s early Asian session. 
  • Further easing in UK inflation data prompted the expectation that the BoE will start lowering interest rates this year. 
  • Fed Chair Jerome Powell said he will wait longer than previously expected to cut rates after unexpectedly upside inflation readings.

The GBP/USD pair trades on a softer note around 1.2450 during the early Asian trading hours on Thursday. The softer UK inflation data prompted the expectation that the Bank of England (BoE) will start lowering interest rates in the coming months, which weighs on the Pound Sterling (GBP) against the Greenback. Investors will take more cues from the US weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, the CB Leading Index, and Existing Home Sales, due on Thursday. 

The BoE hinted that the UK is still on course for an interest rate cut, as recent data showed a further easing in the pace of price growth in the economy. On Wednesday, the Office for National Statistics (ONS) showed that the UK Consumer Price Index (CPI) inflation dropped to 3.2% in the 12 months to March, the softest level for two-and-a-half years. The figure was down from the previous reading of 3.4%. However, investors expect the first rate cut in August or September, according to the LSEG data. 

On the USD’s front, the upbeat February's Retail Sales earlier this week suggested a robust economy in the United States. The report triggered speculation that the Federal Reserve (Fed) might delay its easing cycle this year. The Fed Chair Jerome Powell stated that he will wait longer than previously expected to cut rates after unexpectedly upside inflation readings. Powell added that the US central bank will likely take more time to gain confidence that price growth is headed toward the Fed’s 2% target before lowering borrowing costs. This, in turn, provides some support to the Greenback and caps the upside of the GBP/USD pair. 

GBP/USD

Overview
Today last price 1.2451
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.2454
 
Trends
Daily SMA20 1.2584
Daily SMA50 1.2647
Daily SMA100 1.2662
Daily SMA200 1.2576
 
Levels
Previous Daily High 1.2482
Previous Daily Low 1.2417
Previous Weekly High 1.2709
Previous Weekly Low 1.2427
Previous Monthly High 1.2894
Previous Monthly Low 1.2575
Daily Fibonacci 38.2% 1.2457
Daily Fibonacci 61.8% 1.2442
Daily Pivot Point S1 1.242
Daily Pivot Point S2 1.2386
Daily Pivot Point S3 1.2355
Daily Pivot Point R1 1.2485
Daily Pivot Point R2 1.2516
Daily Pivot Point R3 1.255

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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