24 May 2024, GBP/USD
Event to watch out for today:
15:30 GMT+3. USD - Durable Goods Orders
GBPUSD:
The Pound-Dollar pair is losing momentum to recover near 1.2695 in the early Asian session on Friday. The major pair is declining after pulling back from a recent top near 1.2760 amid renewed demand for the US Dollar (USD). Later on Friday, data on US durable goods orders and Michigan consumer sentiment index will be released.
On Thursday, the flash PMI from the S&P Global Composite rose to 54.4 in May from 51.3 in April, beating the market consensus forecast of 51.1. The reading was the highest since April 2022. Meanwhile, the manufacturing PMI rose to 50.9 in April from the previous reading of 50.0. The services PMI for the same period improved to 54.8 from 51.3 previously. Both indicators were better than market expectations.
Rising input prices in the manufacturing sector indicate that inflation may pick up in the coming months, which could prompt the US Federal Reserve (Fed) to delay an interest rate cut this year. This, in turn, would provide some support for the US Dollar and create a headwind for the GBP/USD pair.
On the other hand, the UK CPI inflation report earlier this week caused investors to lower expectations for a Bank of England (BoE) rate cut next month. Investors believe that the probability of a first rate cut in August is almost 50%, and a quarter-point rate change will not be fully priced in until November.
Trading Recommendation: Watch the level of 1.2700, on the rebound take Sell positions.
FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!
en 
id 
ar 
ru 
vn 
es 
pt 
th 
kz 
ua 
tj 
uz 
az 