GBP/USD Price Analysis: Consolidates near multi-month low, below 1.2400 ahead of UK CPI
The GBP/USD pair extends the previous day’s rejection slide from the vicinity of a technically significant 200-day SMA, around the 1.2425-1.2430 region, and remains on the defensive through the Asian session on Wednesday. Spot prices currently trade below the 1.2400 round-figure mark, well within the striking distance of the lowest level since early June.
The British Pound (GBP) is undermined by reduced bets for more aggressive policy tightening by the Bank of England (BoE). This, along with the underlying bullish sentiment surrounding the US Dollar (USD), continues to act as a headwind for the GBP/USD pair. Traders, however, seem reluctant to place aggressive bets and opt to wait on the sidelines ahead of the latest UK consumer inflation figures. This will be followed by the highly-anticipated FOMC policy decision, due later during the US session and the BoE meeting on Thursday. Read more…
GBP/USD hangs near multi-month low, looks to UK CPI ahead of central bank event risks
The GBP/USD pair continues with its struggle to register any meaningful recovery and extends its consolidative price moves for the third successive day on Wednesday. Spot prices trade below the 1.2400 mark during the Asian session and remain well within the striking distance of its lowest level since early June touched on Monday.
Traders now seem reluctant and opt to wait on the sidelines ahead of this week’s key data/central bank event risks, starting with the release of the latest UK consumer inflation figures later today. The headline UK CPI is anticipated to have accelerated to 7.1% in August from 6.8% previous, while the core reading, which excludes seasonally volatile food and energy prices, is seen edging lower to 6.8% YoY rate from 6.9% in July. A surprisingly higher print will suggest that wage pressures are still feeding through into higher prices, which, in turn, should benefit the British Pound and provide a goodish lift to the GBP/USD pair. Read more…
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