GBP/USD trades on a softer note above the mid-1.2600s, US PCE data eyed

Source Fxstreet
  • GBP/USD loses traction near 1.2660 in Thursday’s early Asian session. 
  • US economic growth was slightly weaker than previously forecast in the fourth quarter of 2023. 
  • BoE policymakers said they need more incoming data to consider before lowering interest rates.
  • The US Core Personal Consumption Expenditures Index (Core PCE) will be in the spotlight on Thursday. 

The GBP/USD pair bounces off the multi-day lows near 1.2620 and recovers to 1.2660 during the early Asian session on Thursday. The renewed US Dollar (USD) demand ahead of the key US event weighs on the major pair. Investors await the US January Personal Consumption Expenditures Price Index (PCE) on Thursday for fresh impetus. At press time, GBP/USD is trading at 1.2660, down 0.01% for the day.

The New York Federal Reserve (Fed) President John Williams said on Wednesday that even though there's still some distance to cover in achieving the Fed 2% inflation target, the door is opening to interest rate cuts this year, depending on how the data come in. 

The recent inflation data has caused financial markets to push back the timing of the first rate cut, which provides some support for the Greenback. Nonetheless, the US PCE data due later in the day might offer some hints about the inflation trajectory in the United States. 

On Wednesday, the US Gross Domestic Product (GDP) for the fourth quarter grew at a 3.2% annualized rate from 3.3% in the previous reading, according to the US Bureau of Economic Analysis (BEA). The figure came in weaker than the estimation of a 3.3% expansion for Q4. 

The Bank of England (BoE) policymakers said they need more evidence that inflation will come down to the 2% target before they decide to lower the key lending rates. The BoE expects year-over-year inflation to decline from 4% last month to 2% in the second quarter of this year, but then rise to 3% by the end of 2024 as the disinflationary effect of lower natural gas prices fades.

Looking ahead, traders will keep an eye on the Fed's preferred inflation measure, the Core Personal Consumption Expenditures Index (Core PCE), due on Thursday. Additionally, the UK Nationwide Housing Prices and Consumer Credit will be released later in the day. 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, 2025
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
Solana Future: From high-speed experiment to corporate treasury playbook for the next SOL cycleSolana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
Author  Mitrade
Jan 12, Mon
Solana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
placeholder
Silver Price Forecast: XAG/USD corrects to near $86.50 as Iran stops killing protestersSilver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday.
Author  FXStreet
Jan 15, Thu
Silver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday.
placeholder
Standard Chartered lifts Ethereum call to $7,500, arguing institutional demand could leave Bitcoin trailingStandard Chartered raised its year-end Ethereum target to $7,500 (from $4,000), citing institutional demand, while projecting $25,000 by 2028 and scenarios toward $40,000 by 2030 amid ETF- and treasury-driven accumulation.
Author  Mitrade
Jan 15, Thu
Standard Chartered raised its year-end Ethereum target to $7,500 (from $4,000), citing institutional demand, while projecting $25,000 by 2028 and scenarios toward $40,000 by 2030 amid ETF- and treasury-driven accumulation.
placeholder
Bitcoin Flashes Classic Bottom Signals as BTC Nears $101K ReclaimBitcoin nears two-month highs with key indicators signaling potential for further gains as it targets $101,000.
Author  Mitrade
Jan 16, Fri
Bitcoin nears two-month highs with key indicators signaling potential for further gains as it targets $101,000.
Related Instrument
goTop
quote