GBP/USD Retreats From 1.2700 As Focus Shifts To Uk Inflation & BoE Policy Decision

GBP/USD faced selling pressure in London on Tuesday, attempting to rebound further above the 1.2700 round mark. The pair fell as the dollar rebounded after a small pullback from a six-week high. The U.S. Dollar Index (DXY), which tracks the value of the U.S. dollar against six major currencies, remained above 105.00 as Federal Reserve (FED) officials continued to advocate only one rate cut this year.

Fed policymakers want to see inflation rates fall for several consecutive months to boost confidence in rate cuts. Although the deflationary process has resumed after stagnating in the first quarter of this year, they are still concerned that a premature rate cut will lead to a re-acceleration of price pressures.

On Monday, Philadelphia Fed President Patrick Harker emphasized keeping interest rates unchanged for the time being to maintain downward inflation pressures in various sectors such as housing and services, especially auto insurance and repair. Regarding the outlook for interest rates, Harker believes that if his economic forecasts work, the benchmark rate will be cut once this year, according to Reuters.

On the economic front, investors will focus on the monthly U.S. retail sales data for May, which will be released at 20:30 Beijing time. Retail sales data, an important measure of consumer spending that can provide clues to the inflation outlook, is expected to increase by 0.3% from 0.0% in the prior period.

GBP latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright