Forex News

02:08:27 24-05-2024

GBP/USD loses its recovery momentum below 1.2700, eyes on UK Retail Sales

  • GBP/USD weakens to 1.2695 on the firmer USD on Friday. 
  • The US PMI accelerated to the highest level in just over two years in May. 
  • The UK inflation data dashed hopes of BoE rate cuts in June. 

The GBP/USD pair loses its recovery momentum near 1.2695 during the early Asian session on Friday. The major pair edges lower after retracing from the recent top around 1.2760 amid renewed US Dollar (USD) demand. Later on Friday, the UK Retail Sales, US Durable Goods Orders, and Michigan Consumer Sentiment Index will be due. 

On Thursday, the flash US S&P Global Composite PMI climbed to 54.4 in May from 51.3 in April, above the market consensus of 51.1. This figure registered the highest level since April 2022. Meanwhile, the Manufacturing PMI rose to 50.9 in April from the previous reading of 50.0. The Services PMI improved to 54.8 in the same period from 51.3 prior. Both figures came in better than market expectations. 

A surge in prices of inputs in the manufacturing sector suggested that inflation could pick up in the months ahead, which might prompt the US Federal Reserve (Fed) to delay the interest rate cut this year. This, in turn, provides some support to the Greenback and creates a headwind for the GBP/USD pair.  

On the other hand, the UK CPI inflation report earlier this week prompted investors to lower their bets on the Bank of England (BoE) rate cut next month. Investors see nearly 50% odds of a first-rate cut in August, and a quarter-point move is not fully priced in until November.


Today last price 1.2696
Today Daily Change -0.0021
Today Daily Change % -0.17
Today daily open 1.2717
Daily SMA20 1.2581
Daily SMA50 1.2582
Daily SMA100 1.2633
Daily SMA200 1.2541
Previous Daily High 1.2761
Previous Daily Low 1.27
Previous Weekly High 1.2712
Previous Weekly Low 1.2509
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2738
Daily Fibonacci 61.8% 1.2724
Daily Pivot Point S1 1.2691
Daily Pivot Point S2 1.2665
Daily Pivot Point S3 1.263
Daily Pivot Point R1 1.2752
Daily Pivot Point R2 1.2787
Daily Pivot Point R3 1.2813



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