GBP/USD stays firmer past 1.2400 on hopes of more BoE rate hikes, US employment in focus – Crypto News – Crypto News
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GBP/USD will the cycle wave z continue? GBP/USD will the cycle wave z continue?

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GBP/USD stays firmer past 1.2400 on hopes of more BoE rate hikes, US employment in focus – Crypto News

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  • GBP/USD grinds higher at weekly top after four-day uptrend.
  • Recent data, BoE talks underpin concerns of UK’s sticky inflation, suggest more rate lifts from “Old Lady”.
  • Hopes of debt ceiling deal passage in US House, mixed US data prod US Dollar bulls after refreshing DXY peak.
  • US ADP Employment Change, PMIs in focus for clear directions.

GBP/USD bulls stay in the driver’s seat for the fifth consecutive day, despite the latest Asian-session inaction around 1.2440 during early Thursday. In doing so, the cables The pair not only cheers the latest retreat of the US Dollar but also benefits from the hints that the UK’s inflation problem are bigger and could push the Bank of England (BoE) towards more rate hikes.

On Wednesday, Lloyds Bank unveiled monthly releases of its business sentiment gauge and inflation signals for May. On the same line, Bank of England (BoE) Monetary Policy Committee member Catherine Mann said that the gap between the headline and core inflation in the UK is more persistent than in the US and the Euro area, per Reuters.

On the other hand, the US Dollar Index (DXY) initially rose to the highest levels since March 15 before retreating from 104.70. The greenback’s latest pullback could be linked to the recently mixed US data and receding fears that the US will default in its government debt payment.

The hope of US debt ceiling passage from the House of Representatives increased after US Senate Republican Leader McConnell conveyed expectations of the US debt ceiling bill passing and reaching the Senate on Thursday.

Elsewhere, US JOLTS Job Openings rose to 10.103M in April versus 9.375M expected and 9.745M prior whereas Chicago Purchasing Managers’ Index dropped to 40.4 for May from 48.6 prior and 47.0 market forecasts.

It should be noted that the mixed comments from the Federal Reserve (Fed) officials also weighed in on the US Dollar during late Wednesday. That said, Federal Reserve (Fed) Governor Michelle Bowman cited recovery in the residential real estate market while also adding, “The leveling out of home prices will have implications for the Fed’s fight to lower inflation,” per Reuters. Prior to him, Cleveland Fed President Loretta Mester suggested that the Fed should go for a rate hike in June.

Also read: US ADP Employment, ISM Manufacturing PMI Preview: First down, then up for US Dollar?

technical analysis

Despite the GBP/USD pair’s successful recovery from the 100-DMA support around 1.2300, the buyers need validation from the 50-DMA hurdle near 1.2450.

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