The post GBP/USD breaks above recent consolidation on fresh Greenback weakness appeared on BitcoinEthereumNews.com.

GBP/USD rallied on Monday, tapping the 1.3400 handle once again. The Greenback shed weight on Monday as investor sentiment remains stubbornly high. UK CPI inflation data due on Wednesday, US PMI figures slated for Thursday. GBP/USD rose at the outset of the new trading week, briefly testing the 1.3400 handle for the second time in two weeks. Despite an early bullish push in cable bids, buyers couldn’t lock in a fresh high, and price action trimmed back to a more sedate 1.3350. Moody’s ratings agency stripped the United States (US) of its last remaining AAA rating on its Treasuries last Friday, citing burgeoning US debt and government deficits that successive presidential administrations either refuse to, or are incapable of, bringing under control. Investor sentiment wobbled at the headlines, but quickly recovered and shrugged off the hit to US creditworthiness. Still, not all is perfectly rosy in the Treasury markets: 30-year yields broke above 5% on Monday, and 10-year yields traded north of 4.5%. Federal Reserve (Fed) speakers have hit the ground running this week to temper market expectations for rate cuts. All Fed policymakers have been gently but firmly reminding investors that the US’s still-existing tariff and trade policies make it nearly impossible to forecast the domestic economy, and adjust policy rates as a result. The latest UK Consumer Price Index (CPI) inflation is scheduled to release on Wednesday, and is expected to jump appreciably on both a monthly and annualized basis. Core UK CPI inflation is forecast to rise to 3.7% YoY from 3.4%. The key economic data release this week on the US side of the Pacific will be S&P Global Purchasing Managers Index (PMI) figures for May. According to median market forecasts, both the manufacturing and services components of the PMI report are expected to decline slightly…

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Filed under: News - @ May 20, 2025 12:24 am