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GBP/USD clings to gains on soft US Dollar ahead of US inflation


Pound Sterling clings to gains on soft US Dollar ahead of US inflation

The Pound Sterling (GBP) posts a fresh weekly high at the round-level resistance of 1.2600 against the US Dollar (USD) in Wednesday’s London session. The GBP/USD pair holds strength as the US Dollar is on the back foot ahead of the United States Consumer Price Index (CPI) data for April, which will be published at 12:30 GMT. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, dips below the crucial support of 105.00.

Economists expect that monthly headline inflation grew at a steady 0.4%. The core CPI, which strips off volatile food and energy prices, is expected to have risen at a slower pace of 0.3% in April, from March’s reading of 0.4%. Annual headline CPI is forecasted to have softened to 3.4% from 3.5% in March. In the same period, core inflation is anticipated to have decelerated to 3.6% from the prior reading of 3.8%. Read more…

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GBP/USD Forecast: Next resistance for Pound Sterling aligns at 1.2630

GBP/USD declined toward 1.2500 in the early American session on Tuesday but managed to reverse its direction. Supported by the selling pressure surrounding the US Dollar (USD), the pair climbed above 1.2550 and closed the day in positive territory. Early Wednesday, the pair stays relatively quiet near 1.2600 as investors await key April inflation data from the US.

The USD weakened against its rivals on Tuesday as the market mood improved following the producer inflation data, which showed that the Producer Price Index (PPI) rose 2.2% on a yearly basis in April as forecast. Later in the session, Federal Reserve (Fed) Chairman Jerome Powell noted that the PPI data was “quite mixed.” Powell repeated that it was unlikely that the next move would be a rate hike, adding that they were more likely to hold the policy rate where it is. Read more …

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