Author: FX
GBP/USD eases after a daily high of 1.3580, as the US Dollar recovers despite softer US sentiment and sticky inflation.Fed is expected to cut 25 bps next week, with SEP clarifying forward guidance; Deutsche Bank sees three cuts in 2025.UK GDP stagnates in July, while the BoE is likely to hold rates at 4%, narrowing policy divergence with the Fed.The Pound Sterling (GBP) retreats during the North American session on Friday by a modest 0.10% as the US Dollar (USD) recovers some ground, after a week that witnessed US inflation remaining steady above the Fed’s 2% goal but controlled. GBP/USD…
The British Pound (GBP) retreated slightly against the US Dollar (USD) on Friday, with the GBP/USD pair trading around 1.3555, down 0.1% on the day, correcting after the previous day’s rebound.The GBP remains under pressure in the forex market, however, held back by persistent concerns over the health of the UK labour market ahead of next Tuesday’s release of key employment statistics.Forex investors are awaiting this data with caution as the Bank of England (BoE), which holds its monetary policy meeting next week, could adjust its rate-cutting cycle in line with developments in the labour market.Against this backdrop, GBP/USD volatility…
Gold consolidates near $3,650, holding in a narrow range after this week’s record high near $3,675.Safe-haven demand remains strong, driven by global trade tension and geopolitical risk.Markets have fully priced in a 25 bps cut at the Fed’s September 17 meeting, a +90% probability says CME Fedwatch Tool.Gold (XAU/USD) is trading with a positive tone on Friday, consolidating near $3,650 mark after rebounding from Thursday’s pullback. The precious metal remains stuck in a narrow range after notching an all-time high near $3,675 earlier this week.Despite the sideways price action, Gold is on course for a fourth straight weekly gain, supported…
The Canadian Dollar gains traction against the US Dollar, with USD/CAD slipping below 1.3850.University of Michigan survey signals weaker consumer sentiment and expectations.BoC under pressure to ease, with economists forecasting a 25 bp rate cut on September 17 amid fragile domestic conditions.The Canadian Dollar (CAD) strengthens modestly against the US Dollar (USD) on Friday, with USD/CAD hovering around 1.3840 during the American session. The pair is on track to record its second consecutive weekly gain, as the Greenback steadies following Thursday’s Consumer Price Index (CPI)-induced decline.Fresh data from the University of Michigan underscored a cooling in household confidence. The University…
Consumer confidence in the US deteriorated further in September, with the University of Michigan’s Consumer Sentiment Index dropping to 55.4 in its preliminary estimate from 58.2 in August. This reading came in worse than the market expectation of 58.Other details of the publication showed that the Consumer Current Conditions Index edged lower to 61.2 from 61.7, while the Consumer Expectations Index declined to 51.8 from 55.9.Finally, the 1-year Consumer Inflation Expectation remained unchanged at 4.8% and the 5-year Inflation Expectation rose to 3.9% from 3.5%.Market reaction to UoM Consumer Sentiment Index dataThe US Dollar (USD) Index retreated from session highs…
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The Australian Dollar (AUD) traded slightly lower on Friday, below 0.6650 against the US Dollar (USD), losing 0.15% over the session. Caution dominates trading ahead of the weekend as traders await Monday’s release of key Industrial Production and Retail Sales data from China, Australia’s main trading partner.This Forex session is thus marked by contained volatility on the AUD/USD, in contrast to Thursday’s session, which was shaken by US inflation data.If the Chinese data disappoint on Monday, they could rekindle concerns about Chinese demand for raw materials, a historic driver of the Australian Dollar, and prompt investors to reduce their exposure…
EUR/GBP trades mildly positive near 0.8650, after failing to hold gains above 0.8660.UK GDP flat in July, Industrial and Manufacturing Output disappoint.Focus shifts to UK jobs data on Tuesday, CPI on Wednesday and the BoE policy decision on Thursday.The Euro (EUR) trades with a mild positive tone against the British Pound (GBP) on Friday, with EUR/GBP paring earlier gains after failing to sustain momentum above 0.8660. At the time of writing, the cross is trading around 0.8650 as investors digest sluggish UK Gross Domestic Product (GDP) data alongside cautious commentary from the European Central Bank (ECB).The latest Office for National…
GBP/USD Forecast: Pound Sterling stabilizes ahead of US dataGBP/USD stays under modest bearish pressure and trades at around 1.3550 after gaining about 0.3% on Thursday. Although the technical outlook is yet to point to a buildup in bearish momentum, the pair could find it difficult to hold its ground in case safe-haven flows dominate the action in financial markets heading into the weekend.The US Dollar (USD) weakened against its rivals and allowed GBP/USD to stretch higher following the mixed macroeconomic data releases on Thursday. Read more…GBP/USD bullish bias intact after CPIToday’s US CPI release came in line with market forecasts,…
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