GBP/USD Trades Higher Around 1.2650 On Hawkish BoE, Weaker US Dollar
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- GBP/USD trims recent losses on subdued US Dollar.
- BoE’s Megan Greene indicated that interest rates remain elevated to curb persistent high inflation.
- US Dollar retraces its recent gains on downbeat US Treasury yields.
GBP/USD recovers its recent losses registered in the previous session, trading higher around 1.2650 during the Asian session on Friday. The GBP/USD pair strengthened on weaker US Dollar (USD) amid downbeat US Treasury yields. Additionally, Bank of England (BoE) officials have been sending hawkish signals throughout the week, providing a boost to the Pound Sterling (GBP). There is an estimate that the BoE will maintain higher interest rates for an extended period, especially considering that inflation is currently more than twice the central bank's target.
Interest rate-setter Megan Greene from the Bank of England expressed concerns about persistently high inflation, indicating that interest rates might need to remain elevated for an extended duration. This perspective contrasts with some recent data suggesting a potential downturn in the economy.
The US Dollar Index (DXY) encounters a challenge as the 2-year US Bond yield drops to 4.67%, by the press time, following recent gains. Despite the Greenback surging to 103.59 on Thursday, the DXY trades lower at 103.30.
Moreover, the US Core Personal Consumption Expenditures Price Index (PCE) displayed a year-on-year easing to 3.5% in October from the previous reading of 3.7%, meeting expectations. The month-on-month Core PCE Price Index saw a decrease to 0.2% from the prior 0.3%. Additionally, Initial Jobless Claims for the week ending November 24 totaled 218K, slightly below the expected 220K but higher than the revised previous figures of 211K (revised from 209K).
Investors await Nationwide Housing Prices from the United Kingdom (UK) on Friday, along with the US ISM Manufacturing PMI for November. Moreover, the focus will be on US Federal Reserve (Fed) Chairman Jerome Powell’s speech.
GBP/USD: ADDITIONAL IMPORTANT LEVELS
| OVERVIEW | |
|---|---|
| Today last price | 1.2655 |
| Today Daily Change | 0.0031 |
| Today Daily Change % | 0.25 |
| Today daily open | 1.2624 |
| TRENDS | |
|---|---|
| Daily SMA20 | 1.2457 |
| Daily SMA50 | 1.2289 |
| Daily SMA100 | 1.2486 |
| Daily SMA200 | 1.2468 |
| LEVELS | |
|---|---|
| Previous Daily High | 1.2711 |
| Previous Daily Low | 1.2604 |
| Previous Weekly High | 1.2616 |
| Previous Weekly Low | 1.2446 |
| Previous Monthly High | 1.2733 |
| Previous Monthly Low | 1.2096 |
| Daily Fibonacci 38.2% | 1.2644 |
| Daily Fibonacci 61.8% | 1.267 |
| Daily Pivot Point S1 | 1.2581 |
| Daily Pivot Point S2 | 1.2539 |
| Daily Pivot Point S3 | 1.2474 |
| Daily Pivot Point R1 | 1.2688 |
| Daily Pivot Point R2 | 1.2753 |
| Daily Pivot Point R3 | 1.2796 |
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