GBPUSD GBP/USD
- 1.26713
- -0.00163-0.13%
GBP/USD News
GBP/USD Hangs Near Its Lowest Level Since Early May, Seems Vulnerable Below 1.2700
The GBP/USD pair struggles to capitalize on Friday's modest bounce from the vicinity of mid-1.2600s or a nearly one-month low and oscillates in a narrow band on the first trading day of a new week.
Kashkari: The Federal Reserve has plenty of time to consider a rate cut before it happens.
Kashkari said that if there is only one interest rate cut this year, it is likely to happen at the end of the year.
Fed's Kashkari predicts: One interest rate cut is reasonable this year, but it should wait until December.
On Sunday, Minneapolis Federal Reserve President Kashkari said it was a reasonable prediction that the Fed will cut interest rates once this year, but not until December. This is lower than the expectations of many economists and investors.
New York Fed: Neutral interest rates stable at a low level in the first quarter.
Data released by the New York Fed on Friday showed that the neutral interest rate remained at a low level in the first quarter of this year.
Fed's Mester: Despite the improvement in data, inflation risks still tend to rise.
Cleveland Fed President Mester said that despite the pleasing latest inflation data, she still believes that inflation risks are tilted to the upside.
Chicago Fed President: May inflation data paves the way for interest rate cuts.
Zhifubao Finance learned that Chicago Fed Chairman Guo Ersi said on Friday that if future inflation data is as good as May's consumer price index, the Federal Reserve may consider lowering interest rates. He pointed out that a strong labor market means that the Fed can rely on inflation to drive interest rate cuts. Guo Ersi said in a fireside chat at the Iowa Farm Bureau Economic Summit, "This data is just for a month, but it's very good." According to data from the Bureau of Labor Statistics, the May consumer price index was almost flat, rising only 0.00575%, while the market expected a 0.1% increase.
The high inflation in the USA flabbergasts the whistle-blower who strongly criticizes the fiscal revenue system proposed by Trump as the mother of stagflation!
Former US Treasury Secretary and whistle-blower for US high inflation, Summers harshly criticized the fiscal revenue system proposed by former President Trump, saying on Friday that this is the mother of stagflation and will also trigger a global economic war. He warned that this could easily lead to mortgage loan interest rates reaching 10%.
Two Federal Reserve officials emphasized the hope to see several months of good inflation data before lowering interest rates.
Loretta Mester, president of the Cleveland Federal Reserve, said, "Recent data shows that inflation is softening, which is good news." She hopes to see several more months of good data before considering a rate cut. In an interview with CNBC on Friday, Mester said, "I would like to see several more months of relatively good inflation data, which means a decline in inflation rates and the beginning of a downward trend in short-term inflation expectations." Mester said, "I believe that inflation risks are on the rise, and the labor market is both upward and downward." She said, "We have made good progress in fighting inflation in the past two years, but inflation is still there."
Federal Reserve Wants to Cut Rates, Appears Trapped by Inflation
As the Fed keeps hopes alive for at least one rate cut this year, metals investors are weighing the inflation outlook.
Fed's Goolsbee: European Rate Cuts Could Bolster the US Dollar
Austan Goolsbee, President of the Federal Reserve (Fed) Bank of Chicago cautioned that he still wants to see further progress on inflation, but sees the possibility of worsening conditions in manufacturing and argiculture. Chicago Fed head Goolsbee was speaking at the Iowa Farm Bureau Economic Summit Ankeny, Iowa.
Fed's Mester: Probably Won't Get to 2.0% Inflation Until 2026
Federal Reserve (Fed) Bank of Cleveland President Loretta Mester noted on Friday that she would like to see a longer run of good-looking inflation data, and noted that the path towards the Fed's 2.0% inflation goal may take longer than expected.
US Dollar Strength Continues as Market Adjusts to Consumer Sentiment Collapse
On Friday, the US Dollar Index (DXY) shrugged off weak data releases and continued its positive traction. The Index now hovers around its highest level since early May near 105.80 and then retreated to 105.60 but held daily gains.
Still in a Slump: June Marks Third Straight Slip in Consumer Sentiment
Today's softer-than-expected reading puts consumer sentiment at roughly the midpoint of where it has been over the past two years.
GBP/USD Price Analysis: Bearish Harami Confirmed as Pound Slumps Below 1.2700
The Pound Sterling dropped sharply below the 1.2700 figure as risk aversion took its toll on most G7 currencies, except for safe-haven peers like the Greenback.
Consumer confidence in the USA unexpectedly fell to a seven-month low, with a slight rebound in long-term inflation expectations.
According to analysis, the decline in consumer sentiment in the USA coincides with signs of a weak labor market. Although low-income households have seen significant wage growth, their budgets remain tight even with the slowdown in inflation, due to the high cost of goods. The views of middle-income consumers are similar to those of low-income consumers, which is different from historical patterns.
GBP/USD IG Client Sentiment: Our Data Shows Traders Are Now Net-long GBP/USD for the First Time Since May 14, 2024 When GBP/USD Traded Near 1.26.
United Kingdom's central bank: Even if inflation falls, more British people predict a rate hike rather than a rate cut.
Although the United Kingdom's inflation expectations have dropped to 2.8%, the lowest since August 2021, the public is not yet convinced that interest rate cuts are underway.
Technical analysis of EUR/USD, GBP/USD, and usd.
Yesterday, the unexpected decline in US PPI data and the decrease in the number of people claiming unemployment relief sent a mixed signal to the US dollar. The central bank speeches from ECB President Lagarde and FOMC member Koch may cause market volatility and affect currency trends.
Britons Expect Rate Rises Even as Inflation Falls, BOE Says
UK inflation expectations fell to the lowest in three years, but the public is yet to be convinced interest-rate cuts are under way.
Inflation pressure still exists. The Bank of England is expected to continue to hold steady next week.
For British Prime Minister Sunak, the hope that the Bank of England will cut interest rates before the election may be dashed because inflationary pressures in the UK appear to be too great for the Bank of England to cut rates at its policy meeting on June 20.