GBP/USD slips below 1.3350 as traders adopt caution due to US data blackout
GBP/USD extends its losing streak for the fifth consecutive day, trading around 1.3340 during the Asian hours on Thursday. The pair depreciates as the US Dollar (USD) draws support due to increased risk aversion as traders are expected to approach the United States (US) inflation data due on Friday cautiously amid the ongoing government shutdown and resulting data blackout.
The Greenback also gains ground amid optimism surrounding the United States (US)-China trade deal. US President Donald Trump said late Wednesday that he expects to strike several agreements with Chinese President Xi Jinping during their meeting in South Korea next week. The Trump-Xi talks are set to address various issues, including U.S. soybean exports, nuclear arms limits, and China’s Russian Oil purchases. Read more…
GBP/USD extends into a fourth down day as Cable pressure wanes
GBP/USD fell for a fourth straight day on Wednesday, coming within inches of 1.3300 before staging a half-hearted recovery to the 1.3350 region but still ending the day on a down note. Cable traders will be getting a breather on the economic data front until a batch of key releases on Friday that will feature both UK and US data updates.
Global risk appetite took a knee on Wednesday as the Trump administration publicly weighs its options on retaliating against China, who imposed stiff export controls on rare earths in recent weeks. US President Donald Trump has run the gamut of trade war retaliations, from canceling planned trade talks with Chinese President Xi Jinping to threatening an additional 155% tariff on all Chinese goods. Now, the Trump administration is teasing that it may impose export controls of its own on US-producted software products, raising investor concerns that the ongoing trade spate between the US and China could begin to negatively impact markets. Read more…
GBP/USD steady near 1.3360 post soft UK CPI
GBP/USD holds firm during the North American session on Wednesday following the latest inflation report in the United Kingdom, which triggered some weakness in the Pound Sterling (GBP), as expectations for further easing by the Bank of England (BoE) increased. The pair trades at 1.3362, virtually unchanged after diving to 1.3305 following the release of the CPI data.
The economic docket in the US remains subdued, with companies reporting earnings that indicate sustained investment in AI. Meanwhile, US President Donald Trump tempered his trade rhetoric on China, improving the risk appetite during the last couple of days. Read more…
