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    GBP/USD trades on a softer note below 1.2530 ahead of US PCE data

    Source Fxstreet
    Apr 26, 2024 00:31
    • GBP/USD snaps the three-day winning streak near 1.2502 in Friday’s early Asian session. 
    • The US economy grew at a slower pace of 1.6% in Q1 2024, compared to 3.4% in the previous reading. 
    • The expectation that the BoE will cut rates before the US Fed might exert some selling pressure on the GBP. 

    The GBP/USD pair trades on a weaker note around 1.2502 during the early Asian trading hours on Friday. The modest rebound of the US Dollar (USD) weighs on the major pair despite weaker US GDP growth numbers. The US Personal Consumption Expenditures (PCE) Price Index data on Friday will be in the spotlight. 

    On Thursday, the US economy grew at a slower pace of 1.6% in the first quarter (Q1) of 2024, compared to 3.4% in the previous reading. This figure came in weaker than the market expectation of 2.5%. However, prices have remained sticky, with the data on Thursday revealing the Personal Consumption Expenditures Price Index in Q1 climbing at a 3.4% annual rate, above the Fed's 2% target. The Greenback has dropped to two-week lows near mid-105.00 after the release of weaker-than-expected Q1 GDP growth and a hotter-than-expected inflation reading. 

    According to the CME FedWatch tool, financial markets have priced in less than 10% odds that the US Federal Reserve (Fed) will cut interest rates in June, while the probability of a September rate cut dropping below 58%. Investors will take more cues from another inflation report on Friday. The US PCE is expected to show an increase of 0.3% MoM in both headline and core PCE figures. On an annual basis, the headline PCE and Core PCE figures are estimated to show a rise of 2.6% and 2.7% YoY, respectively. 

    On the GBP’s front, the Bank of England (BoE) Governor Andrew Bailey and other BoE policymakers stated that inflation in the United Kingdom dropped in line with the central bank's expectations and the risk of elevated inflation had reduced, paving the way for a rate cut. The market anticipates that the UK central bank will wait until next quarter to lower borrowing costs, and it will begin before the US Fed. This, in turn, might cap the upside of the Pound Sterling (GBP). 

    GBP/USD

    Overview
    Today last price 1.2505
    Today Daily Change -0.0009
    Today Daily Change % -0.07
    Today daily open 1.2514
     
    Trends
    Daily SMA20 1.2524
    Daily SMA50 1.2626
    Daily SMA100 1.2651
    Daily SMA200 1.2559
     
    Levels
    Previous Daily High 1.2527
    Previous Daily Low 1.2454
    Previous Weekly High 1.2499
    Previous Weekly Low 1.2367
    Previous Monthly High 1.2894
    Previous Monthly Low 1.2575
    Daily Fibonacci 38.2% 1.2499
    Daily Fibonacci 61.8% 1.2482
    Daily Pivot Point S1 1.247
    Daily Pivot Point S2 1.2426
    Daily Pivot Point S3 1.2397
    Daily Pivot Point R1 1.2542
    Daily Pivot Point R2 1.2571
    Daily Pivot Point R3 1.2614

     


     

     

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