GBP/USD Extends upbeat rally as US CPI inflation cools
-
GBP/USD
found
the
gas
pedal
and
extended
into
a
two-day
bull
run. -
US
CPI
inflation
cooled
in
June,
and
reigniting
rate-cut
bets. -
US
PPI
wholesale
inflation
on
the
docket
for
Friday.
GBP/USD
extended
into
a
second
day
of
a
topside
run,
breaking
through
a
firm
supply
zone
and
setting
a
fresh
peak
for
2024
near
1.2950.
The
pair
set
a
new
50-week
high
as
the
Greenback
tumbled
across
the
board
after
US
Consumer
Price
Index
(CPI)
inflation
cooled
to
its
lowest
levels
since
2021.
Forex
Today: Focus
remains
on
US
inflation
In
June,
US
CPI
inflation
was
lower
than
expected.
The
annualized
headline
CPI
inflation
dropped
to
3.0%
YoY
from
the
previous
3.3%,
lower
than
the
forecasted
3.1%.
Additionally,
CPI
inflation
decreased
by
-0.1%
MoM
in
June,
down
from
the
previous
month’s
0.0%
and
below
the
expected
0.1%.
For
the
week
ending
July
5,
US
Initial
Jobless
Claims
decreased
to
222K,
down
from
the
revised
239K
of
the
previous
week
and
better
than
the
forecasted
236
K.
This
decline
in
jobless
claims
reduced
the
four-week
average
to
233.5K
from
the
previous
238.75
K.
Due
to
the
accelerated
cooling
of
US
CPI
inflation,
market
expectations
for
a
rate
hike
from
the
Federal
Reserve
(Fed)
are
now
indicating
the
possibility
of
three
quarter-point
rate
cuts
in
2024.
The
CME’s
FedWatch
Tool
is
showing
a
95%
increase
in
the
likelihood
of
a
rate
cut
in
September.
With
US
CPI
data
out
of
the
way,
all
that’s
left
for
the
week
is
Friday’s
US
Producer
Price
Index
(PPI)
wholesale
inflation
print,
which
could
throw
a
wrench
in
the
works
for
rate-cut
hopefuls.
Core
PPI
for
the
year
ended
in
June
is
expected
to
tick
upwards
to
2.5%
from
the
previous
2.3%
as
businesses
continue
to
face
higher
cost
pressures
than
the
Fed
would
like
to
see.
British
Pound
PRICE
Today
The
table
below
shows
the
percentage
change
of
British
Pound
(GBP)
against
listed
major
currencies
today.
British
Pound
was
the
strongest
against
the
Japanese
Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | -0.01% | 0.32% | 0.00% | -0.06% | 0.14% | 0.07% | |
| EUR | -0.01% | -0.02% | 0.36% | -0.01% | -0.08% | 0.12% | 0.04% | |
| GBP | 0.01% | 0.02% | 0.37% | 0.00% | -0.07% | 0.14% | 0.05% | |
| JPY | -0.32% | -0.36% | -0.37% | -0.37% | -0.41% | -0.23% | -0.29% | |
| CAD | -0.01% | 0.00% | -0.01% | 0.37% | -0.07% | 0.12% | 0.04% | |
| AUD | 0.06% | 0.08% | 0.07% | 0.41% | 0.07% | 0.20% | 0.13% | |
| NZD | -0.14% | -0.12% | -0.14% | 0.23% | -0.12% | -0.20% | -0.07% | |
| CHF | -0.07% | -0.04% | -0.05% | 0.29% | -0.04% | -0.13% | 0.07% |
The
heat
map
shows
percentage
changes
of
major
currencies
against
each
other.
The
base
currency
is
picked
from
the
left
column,
while
the
quote
currency
is
picked
from
the
top
row.
For
example,
if
you
pick
the
British
Pound
from
the
left
column
and
move
along
the
horizontal
line
to
the
US
Dollar,
the
percentage
change
displayed
in
the
box
will
represent
GBP
(base)/USD
(quote).
GBP/USD
technical
outlook
The
Cable’s
Thursday
bull
run
dragged
the
pair
into
a
50-week
peak
just
shy
of
1.2950,
and
the
pair
is
up
2.65%
from
July’s
early
swing
low
near
1.2615.
Daily
candlesticks
have
resumed
a
near-term
topside
run,
closing
in
the
green
for
all
but
two
of
the
last
eleven
consecutive
trading
days.
It’s
the
bulls’
game
to
lose
as
a
bearish
turnaround
from
here
will
drag
GBP/USD
back
into
major
technical
levels
near
the
200-day
Exponential
Moving
Average
(EMA)
at
1.2606.
GBP/USD
hourly
chart
GBP/USD
daily
chart
Pound
Sterling
FAQs
The
Pound
Sterling
(GBP)
is
the
oldest
currency
in
the
world
(886
AD)
and
the
official
currency
of
the
United
Kingdom.
It
is
the
fourth
most
traded
unit
for
foreign
exchange
(FX)
in
the
world,
accounting
for
12%
of
all
transactions,
averaging
$630
billion
a
day,
according
to
2022
data.
Its
key
trading
pairs
are
GBP/USD,
aka
‘Cable’,
which
accounts
for
11%
of
FX,
GBP/JPY,
or
the
‘Dragon’
as
it
is
known
by
traders
(3%),
and
EUR/GBP
(2%).
The
Pound
Sterling
is
issued
by
the
Bank
of
England
(BoE).
The
single
most
important
factor
influencing
the
value
of
the
Pound
Sterling
is
monetary
policy
decided
by
the
Bank
of
England.
The
BoE
bases
its
decisions
on
whether
it
has
achieved
its
primary
goal
of
“price
stability”
–
a
steady
inflation
rate
of
around
2%.
Its
primary
tool
for
achieving
this
is
the
adjustment
of
interest
rates.
When
inflation
is
too
high,
the
BoE
will
try
to
rein
it
in
by
raising
interest
rates,
making
it
more
expensive
for
people
and
businesses
to
access
credit.
This
is
generally
positive
for
GBP,
as
higher
interest
rates
make
the
UK
a
more
attractive
place
for
global
investors
to
park
their
money.
When
inflation
falls
too
low
it
is
a
sign
economic
growth
is
slowing.
In
this
scenario,
the
BoE
will
consider
lowering
interest
rates
to
cheapen
credit
so
businesses
will
borrow
more
to
invest
in
growth-generating
projects.
Data
releases
gauge
the
health
of
the
economy
and
can
impact
the
value
of
the
Pound
Sterling.
Indicators
such
as
GDP,
Manufacturing
and
Services
PMIs,
and
employment
can
all
influence
the
direction
of
the
GBP.
A
strong
economy
is
good
for
Sterling.
Not
only
does
it
attract
more
foreign
investment
but
it
may
encourage
the
BoE
to
put
up
interest
rates,
which
will
directly
strengthen
GBP.
Otherwise,
if
economic
data
is
weak,
the
Pound
Sterling
is
likely
to
fall.
Another
significant
data
release
for
the
Pound
Sterling
is
the
Trade
Balance.
This
indicator
measures
the
difference
between
what
a
country
earns
from
its
exports
and
what
it
spends
on
imports
over
a
given
period.
If
a
country
produces
highly
sought-after
exports,
its
currency
will
benefit
purely
from
the
extra
demand
created
from
foreign
buyers
seeking
to
purchase
these
goods.
Therefore,
a
positive
net
Trade
Balance
strengthens
a
currency
and
vice
versa
for
a
negative
balance.
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