GBP/USD hovers above 1.2400 ahead of UK Retail Sales – Crypto News – Crypto News
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GBP/USD hovers above 1.2400 ahead of UK Retail Sales – Crypto News

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  • GBP/USD losses ground despite stronger US jobless claims data.
  • US Initial Jobless Claims rose to 231K compared to the expected 220K.
  • Pound Sterling faced a challenge due to the downbeat UK inflation data.

GBP/USD moves sideways with a negative tone near 1.2410 during the Asian hours on Friday. The US Dollar (USD) receives upward support despite the upbeat jobless claims data from the United States (US) and a decline in the US Treasury yields.

US Continuing Jobless Claims for the week ending on November 3 increased to the highest level since 2022 at 1.865 million, compared to the previous reading of 1.833 million. Additionally, Initial Jobless Claims for the week ending on November 10 rose to 231,000, exceeding the expected 220,000, and marking the highest level in nearly three months.

Despite these challenging labor market indicators, the US Dollar Index (DXY) recovered ground. Notably, the yield on the 10-year Treasury note bottomed at 4.43% on Thursday. However, it’s observed that the DXY bids lower around 104.30 at the time of writing.

Federal Reserve speaker has taken to the news wires to push back against expectations of rate cuts. Cleveland Fed President Loretta Mester, in particular, emphasized that the US central bank is data-dependent when considering whether to raise rates further. This stance reflects the nuanced approach that the Fed is taking in response to economic conditions.

The UK inflation report for October revealed a notable decline in the annual rate of the Consumer Price Index (CPI), dropping to 4.6% from the previous level of 6.7%. The monthly rate also eased to 0.0%, falling short of the expected 0.1%.

Core CPI (Year-on-Year) also contracted to 5.7% from the previous reading of 6.1%. Despite the Bank of England (BoE) emphasizing the need for higher rates, market participants are not anticipating more rate hikes.

Investors await key economic indicators, focusing on UK Retail Sales and US housing data. These releases are anticipated to provide fresh insights into the economic activities of both countries, shaping market sentiment and potentially influencing trading decisions in the GBP/USD pair.

 

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