The Pound Sterling (GBP) registers back-to-back bearish days, dropping some 0.14% on Friday against the Greenback after economic data from the United Kingdom (UK) revealed that the Gross Domestic Product (GDP) contracted. Despite this, GBP/USD is trading above the 1.2900 figure, poised to finish the day near this level.
GBP/USD pressured after UK GDP miss while rising US inflation expectations complicate Fed's next move
Recently, data from the University of Michigan (UoM) showed that Consumer Sentiment in March deteriorated, from 64.7 to 57.9, below forecast of 63.1. Notably, inflation expectations jumped, with Americans seeing 12-month inflation up from 4.3% to 4.9%. Over a five-year period, consumers saw prices running at 3.9%, up from 3.5%.
GBP/USD traders' eyes are on next week's central bank bonanza, beginning with the Federal Reserve (Fed). Last Friday, Fed Chair Jerome Powell revealed that "market measures of inflation expectations have moved up, driven by tariffs."
Therefore, this Friday's reading could prevent the Fed from easing policy as US President Donald Trump will enact reciprocal tariffs on April 2.
Across the pond, the British economy shrank unexpectedly by -0.1% MoM in January, missing the 0.1% expansion estimated by analysts. After the data, interest rate swaps priced in 56 basis points of interest rate cuts by the Bank of England (BoE) in 2025, which is expected to hold rates next Thursday.
Next week, data from the UK will feature the jobs report, S&P Global Flash PMIs and the BoE interest rate decision. For the US, traders will look at Retail Sales, housing data, the Fed's monetary policy decisions and economic projections.
Source: Fxstreet
Gold prices rose sharply again on Tuesday (January 20th), hitting a new record, breaking through the psychological barrier above $4,700 per ounce. This rise was driven by a "flight to safety" as geopo...
GBP/USD strengthened to around 1.3480 at the start of Friday's Asian session, holding above 1.3450. This strengthening occurred as the US dollar weakened again, as markets became increasingly confiden...
The GBP/USD exchange rate moved steadily around 1.3465 in early Asian trading on Wednesday (December 31). This relatively calm movement occurred because trading volume was expected to be thin ahead of...
The British Pound (GBP) softens against the US Dollar (USD) on Wednesday, with the Greenback finding mild support amid reduced liquidity during the shortened US holiday session. At the time of writing...
Pound Rebounds, UK Data Determines GBP/USD strengthened after three consecutive days of declines. In Monday's Asian session, the pair traded around 1.3394, approaching the 1.3400 level, ahead of the ...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...