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GBP/USD roils on Monday, testing new lows before recovering to flat
The post GBP/USD roils on Monday, testing new lows before recovering to flat appeared on BitcoinEthereumNews.com. GBP/USD spun in a quick circle on Monday, dipping to new lows but returning to flat. GBP bullish sentiment is able to recover near-term losses, but not much else. UK and US inflation data due this week to provide plenty of ammunition for traders. GBP/USD churned as markets rebalance their interest rate expectations through the rest of the year, sending Cable to a fresh 15-month low and tapping the 1.2100 handle before reversing the day’s losses and ending close to where it started at 1.2230. It’s a quiet start to the week, but a crescendo of inflation data on both the US and UK side of the economic calendar will give traders plenty of material to chew through as they try to nail down a rate differential forecast heading through the first quarter. The Federal Reserve (Fed) is broadly expected to stand pat on interest rates through the first half of the year, while the Bank of England (BoE) is expected to have to choose between holding steady on interest rates in the face of still-high inflation, or risking an inflationary spark in order to shore up the UK’s floundering economy with further rate cuts. US Producer Price Index (PPI) figures kick the week’s meaningful data docket off on Tuesday, which is expected to rise to 3.7% YoY in December versus the previous 3.4%. Wednesday brings UK Consumer Price Index (CPI) inflation which is also expected to accelerate in the near-term, forecast to rise to 0.4% MoM versus the previous 0.1%. US CPI inflation, also due on Wednesday, is forecast to tick higher to 2.8% from 2.7%, and US Retail Sales activity is slated for Thursday, with UK Retail Sales rounding out the high-impact data docket for this week. GBP/USD price forecast GBP/USD continues to grind out a bearish path…
The post GBP/USD roils on Monday, testing new lows before recovering to flat appeared on BitcoinEthereumNews.com.
GBP/USD spun in a quick circle on Monday, dipping to new lows but returning to flat. GBP bullish sentiment is able to recover near-term losses, but not much else. UK and US inflation data due this week to provide plenty of ammunition for traders. GBP/USD churned as markets rebalance their interest rate expectations through the rest of the year, sending Cable to a fresh 15-month low and tapping the 1.2100 handle before reversing the day’s losses and ending close to where it started at 1.2230. It’s a quiet start to the week, but a crescendo of inflation data on both the US and UK side of the economic calendar will give traders plenty of material to chew through as they try to nail down a rate differential forecast heading through the first quarter. The Federal Reserve (Fed) is broadly expected to stand pat on interest rates through the first half of the year, while the Bank of England (BoE) is expected to have to choose between holding steady on interest rates in the face of still-high inflation, or risking an inflationary spark in order to shore up the UK’s floundering economy with further rate cuts. US Producer Price Index (PPI) figures kick the week’s meaningful data docket off on Tuesday, which is expected to rise to 3.7% YoY in December versus the previous 3.4%. Wednesday brings UK Consumer Price Index (CPI) inflation which is also expected to accelerate in the near-term, forecast to rise to 0.4% MoM versus the previous 0.1%. US CPI inflation, also due on Wednesday, is forecast to tick higher to 2.8% from 2.7%, and US Retail Sales activity is slated for Thursday, with UK Retail Sales rounding out the high-impact data docket for this week. GBP/USD price forecast GBP/USD continues to grind out a bearish path…
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