Late on Thursday, Bank of England´s monetary policymaker Silvana Tenreyro crossed wires via Reuters while saying, “The more BoE hikes now, the sooner and faster the BoE will later need to cut rates.” Her comments were in contrast with the hawkish Fed talks and dragged the Pound sterling towards refreshing the multi-day low.
That said, Fed Chair Jerome Powell advocated for two more rate hikes in 2023 while Atlanta Federal Reserve President Raphael Bostic flashed mixed signals but stayed hawkish overall.
Apart from the comparatively more hawkish Fed talks, the upbeat US data also raise doubts about the GBP/USD pair’s latest run-up. That said, the final readings of the Gross Domestic Product (GDP) Annualized, mostly known as the Real GDP, grew at the 2.0% rate for the first quarter (Q1) of 2023 versus the 1.3% initial estimation. Further, the US Weekly Initial Jobless Claims slumped to 239K for the week ended on June 23 compared to 265K expected and revised prior. However, the Personal Consumption Expenditure (PCE) Price for Q1 2023 eased to 4.1% QoQ from 4.2% expected and prior whereas the Pending Home Sales slumped to -2.7% MoM for May compared to 0.2% expected and -0.4% prior (revised).
Having witnessed the initial market reaction to the UK data, the GBP/USD pair traders await the US Core Personal Consumption Expenditure (PCE) Price Index for May, also known as the Federal Reserve’s (Fed) favorite inflation gauge. That said, the key inflation gauge is likely to remain static at 0.4% MoM and 4.7% YoY, which in turn may allow the Fed to keep its hawkish bias and recall the GBP/USD bears.
GBPUSD
SELL 1.2700 - 1.2680 💯💯
✅ TP1: 1.2650
✅ TP2: 1.2600
🛑 SL: 1.2750
That said, Fed Chair Jerome Powell advocated for two more rate hikes in 2023 while Atlanta Federal Reserve President Raphael Bostic flashed mixed signals but stayed hawkish overall.
Apart from the comparatively more hawkish Fed talks, the upbeat US data also raise doubts about the GBP/USD pair’s latest run-up. That said, the final readings of the Gross Domestic Product (GDP) Annualized, mostly known as the Real GDP, grew at the 2.0% rate for the first quarter (Q1) of 2023 versus the 1.3% initial estimation. Further, the US Weekly Initial Jobless Claims slumped to 239K for the week ended on June 23 compared to 265K expected and revised prior. However, the Personal Consumption Expenditure (PCE) Price for Q1 2023 eased to 4.1% QoQ from 4.2% expected and prior whereas the Pending Home Sales slumped to -2.7% MoM for May compared to 0.2% expected and -0.4% prior (revised).
Having witnessed the initial market reaction to the UK data, the GBP/USD pair traders await the US Core Personal Consumption Expenditure (PCE) Price Index for May, also known as the Federal Reserve’s (Fed) favorite inflation gauge. That said, the key inflation gauge is likely to remain static at 0.4% MoM and 4.7% YoY, which in turn may allow the Fed to keep its hawkish bias and recall the GBP/USD bears.
GBPUSD
SELL 1.2700 - 1.2680 💯💯 ✅ TP1: 1.2650
✅ TP2: 1.2600
🛑 SL: 1.2750
