GBP/USD moved lower after two days of gains, trading around 1.2220 during Asian trading hours on Thursday (16/1). The pound (GBP) came under downward pressure following weaker-than-expected inflation data from the United Kingdom (UK) released on Wednesday.
The yield on the benchmark 10-year UK bond fell to 4.73%, retreating from a multi-decade high, after official data showed an unexpected drop in UK headline inflation, raising expectations of a rate cut by the Bank of England (BoE).
The UK Consumer Price Index (CPI) rose by 2.5% year-on-year in December, down from 2.6% in November and below market expectations of 2.7%. Despite the slowdown, the reading remained above the Bank of England (BoE) target of 2%.
Meanwhile, the annual core CPI, which excludes volatile food and energy items, grew by 3.2% in December, compared to a 3.5% increase in November, which missed market expectations of 3.4%. Also, services inflation eased sharply to 4.4% year-on-year in December, down from 5% in November.
However, the GBP/USD pair strengthened as the US Dollar (USD) extended its decline following the cooler-than-expected US Consumer Price Index (CPI) inflation data for December, which raised speculation that the US Federal Reserve (Fed) could implement two interest rate cuts this year.
The US CPI rose by 2.9% year-on-year in December, up from 2.7% in November, which was in line with market expectations. On a monthly basis, the CPI increased by 0.4%, following a 0.3% increase in November. U.S. Core CPI, which excludes volatile food and energy prices, rose 3.2% annually in December, slightly below the previous month's 3.3% and analysts' forecast of 3.3%. On a monthly basis, core CPI edged up 0.2% in December 2024.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, was trading near 109.00. Meanwhile, the yields on the 2-year and 10-year U.S. Treasury notes were at 4.27% and 4.66%, respectively. Both yields fell more than 2% on Wednesday as weaker U.S. core CPI data fueled expectations that the Federal Reserve's easing cycle could resume.(AL)
Source: FXstreet
The British Pound (GBP) advances sharply against the US Dollar (USD) on Wednesday, with GBP/USD climbing to a one-week high, reaching its strongest level since September 24, as the Greenback remains u...
GBP/USD caught a slight lift on Tuesday, creeping into the 1.3450 region and tilting into a third straight bullish session. United Kingdom (UK) Gross Domestic Product (GDP) growth figures beat expecta...
The British Pound (GBP) gains traction against the US Dollar (USD) on Friday, with GBP/USD snapping a two-day losing streak. At the time of writing, the pair is hovering near 1.3393, staging a modest ...
The British pound held above $1.363, close to its highest in over ten weeks, as traders awaited key central bank decisions. The Bank of England is expected to leave rates at 4% on Thursday while slowi...
Pound Sterling (GBP) gained modestly against the dollar but underperformed the euro as stagnant productivity, soft labor demand, and sticky wage growth underscore the UK's stagflation risk, BBH FX ana...
Systematic hedge funds have lost money every day since October began, according to a Goldman Sachs client note. These speculators, whose algorithms ride market trends until they peter out and who use market signals rather than views on the...
The S&P 500 rose slightly on Tuesday as Wall Street looked for more developments out of Washington on the current U.S. government shutdown that is now in its second week. The broad market index climbed 0.1%, while the Nasdaq Composite gained...
The dollar continued its strengthening for a second day, pressuring all G-10 currencies; the Japanese yen slumped for a fourth session to its weakest level since March before paring losses. The Bloomberg Dollar Spot Index rose about 0.6% in two...
Asian stocks surged to new highs, led by Japan's Nikkei 225, which surged more than 4% following the election of pro-stimulus lawmaker Sanae...
The S&P 500 and Nasdaq Composite closed at record highs on Monday, spurred by optimism about increased mergers and acquisitions activity after...
Hamas officials were in Egypt on Monday (October 6th) ahead of talks with Israel that the US hopes will lead to an end to the war in Gaza and the...
Euro Area Stock MarketEuropean stocks closed mostly lower on Monday as fresh political turmoil in France rekindled concerns of fiscal instability...