GBP/USD Forecast: Pound Sterling not out of the woods yet
GBP/USD has gained traction early Friday and climbed above 1.2350. Despite the recent rebound, the pair's technical outlook is yet to signal a reversal. Ahead of the weekend, investors will pay close attention to the Personal Consumption Expenditures (PCE) Price Index data from the US.
Although risk flows returned to markets on Thursday, the US Dollar (USD) preserved its strength with robust US data feeding into the hawkish Federal Reserve (Fed) narrative. The US economy's annualized growth for the first quarter got revised higher to 1.3% from 1.1% and the Initial Jobless Claims for the week ending May 20 came in at 229,000, much lower than the market expectation of 245,000. Read more …
GBP/USD clings to gains above 1.2350, lacks follow-through ahead of US PCE Price Index
The GBP/USD pair gains some positive traction on Friday and snaps a three-day losing streak to the 1.2300 neighbourhood, or its lowest level since early April touched the previous day. Spot prices stick to intraday gains through the first half of the European session and currently trade around the 1.2360 region, up over 0.30% for the day.
A modest pullback in the US Treasury bond yields prompts traders to lighten their US Dollar (USD) bullish bets, especially after the recent move up to over a two-month high, which, in turn, lends support to the GBP/USD pair. The British Pound (GBP), meanwhile, gets an additional lift following the better-than-expected release of the UK Retail Sales figures, which rose 0.5% in April as compared to the 0.3% expected and the 1.2% decline registered in the previous month. Read more…
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