GBP/USD takes a breather near 1.2590

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GBP/USD consolidates its gains above 1.2580, all eyes on US CPI data

The GBP/USD pair consolidates its gains around 1.2590 during the early Asian session on Wednesday. The major pair holds above the key 100-day Exponential Moving Average (EMA) but remains capped under the 1.2600 hurdle. The US Consumer Price Index and Retail Sales report for April will be in the spotlight. Also, the Fed’s Kashkari and Bowman are due to speak.

Wholesale inflation, as measured by the Producer Price Index (PPI), hit its highest rate in a year, the Bureau of Labor Statistics showed Tuesday. The US PPI figure rose 2.2% on a yearly basis in April, compared to the 1.8% increase recorded in March (revised from 2.1%), and came in line with the estimation. The Core PPI, which excludes food and energy costs, climbed 2.4% YoY in the same period, compared to an increase of 2.1% in the previous reading and matching the expectation. On a monthly basis, the PPI and the core PPI both rose 0.5% MoM in April. Read more…

Pound Sterling recovers as steady UK wage growth deepens BoE rate-cut uncertainty

The Pound Sterling (GBP) discovers strong buying interest near the psychological support of 1.2500 against the US Dollar in Tuesday’s New York session. The GBP/USD pair rebounds as the impact of weak United Kingdom (UK) Employment data for three months ending in March was offset by steady wage growth. Also, a decline in the US Dollar despite hot United States Producer Price Index (PPI) has boosted demand for the Cable.

The United Kingdom (UK) Office for National Statistics (ONS) has reported that labor market has witnessed a drawdown for the third time in a row while wage growth momentum remains steady at relatively high levels. Read more…



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