- GBP/USD bears are approaching daily lows.
- The British pound is under pressure due to a series of bearish data for the currency.
The GBP/USD pair is back under pressure in US midday trade after a series of data halted attempts to correct the major sell-off that followed a round of negative data for cable. As of this writing, GBP/USD is trading at 1.2005 and is down 1.35%, pressured within the day’s range of 1.1989-1.2181, pulling back from nearly two-week lows and on track for its biggest drop in a day of this month.
The pair has moved lower to break a seven-day rally against the euro, after a larger-than-expected drop in UK inflation in January led investors to believe the Bank of England could stop its cycle of interest rate rises. Inflation slowed to an annual rate of 10.1% in January, from 10.5% in December, versus expectations of 10.3% in a Wall Street Journal survey of analysts.
Adding salt to bulls’ wounds, the dollar rose to a six-week high against a basket of currencies on Wednesday, following better-than-expected US retail sales data last month, which followed high data from the Consumer Price Index of the previous day. In year-on-year terms, retail sales prices rose 6.4%. Retail Sales rose 3% in January, far exceeding the 1.8% estimate, the Commerce Department reported on Wednesday.
Investors are starting to have doubts about whether there will be cuts in 2023. Rates are currently between 4.5% and 4.75%, but the median projection of Fed board members was that they would peak at 5.1% this year. However, the Interest Rate Futures markets have still capped above 5.2%, based on late Tuesday prices.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
