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Pound Sterling drops from 1.2700 against USD ahead of US core PCE inflation The Pound Sterling (GBP) weakens against the US Dollar (USD) in Wednesday’s London session. The recovery move in the GBP/USD pair from the more than five-week low of 1.2620 appears to have stalled near the round-level resistance of 1.2700 as investors shift focus towards the United States (US) core Personal Consumption Expenditures Price Index (PCE) data for May, which will be published on Friday. Investors will pay close attention to the US core PCE inflation data as it is the Federal Reserve’s (Fed) preferred inflation gauge. This data will provide fresh cues about when and how far interest rates will be reduced this year. Annually, the underlying inflation data is estimated to have softened to 2.6% in May from the prior release of 2.8%, with monthly figures growing at a slower pace of 0.1% from 0.2% in April. Read more… GBP/USD Forecast: Pound Sterling turns bearish as strong resistance holds Following Monday’s rebound, GBP/USD tested 1.2700 on Tuesday but failed to clear this level. The pair stays under modest bearish pressure on Wednesday and an extended slide could be seen if 1.2640 support is broken. In the absence of high-tier data the cautious market stance helped the US Dollar (USD) stay resilient against rivals. Additionally, hawkish comments from Federal Reserve (Fed) officials further supported the USD. Fed Governor Michelle Bowman said on Tuesday that they are not yet at the point where it is appropriate to cut interest rates and added she is willing to raise the target rate at a future meeting if inflation progress stalls or reverses. Read more… GBP/USD Forecast: Pound Sterling buyers hesitate as key resistance holds GBP/USD gathered recovery momentum and gained more than 0.3% on Monday, snapping a two-day losing streak. The pair…

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Filed under: News - @ June 26, 2024 3:24 pm