GBPUSD pair has seen delicate barriers.
After surging to near 1.2450 in the early European session, the GBPUSD pair has seen delicate barriers. The Cable is predicted to stay on edge. As the USD Dollar Index (DXY) attempts to rebound after falling to about 103.81. More decline for the US Dollar Index (DXY) appears to be solid. As the US economy approaches recession.
Moreover S&P500 futures have gained nominally in the European session. Indicating a minor improvement in risk sentiment. appetite of the market players. On Monday, US shares saw some selling pressure. After the Institute of Supply Management (ISM) agency announced weaker-than-expected Services PMI data. Demand for US government bonds has declined. The 10-year US Treasury rate has risen to around 3.71%.
The US Services PMI barely survived the contraction phase, and service activity growth was exceedingly moderate.
On Tuesday, the US ISM Services PMI escaped the 50.0 mark that separates the expansion period from the contraction phase.
Moreover May Service PMI was 50.3, which was lower than the expected 51.5. This suggests that the economic indicator has barely defended the decline period, and service activity expansion has been quite moderate.
Furthermore US Manufacturing PMI fell for the seventh month in a row last week. A combination of declining manufacturing activity and moderately expanding service activity might propel The US economy has entered a slump. After Federal Reserve (Fed) has raised interest rates, and US banks have tightened lending conditions, causing US companies’ total productivity to fall.
UK consumers are feeling the effects of rising inflation, which has led to a decrease in non-essential expenditure.
On the Pound Sterling front, the United Kingdom’s households are feeling the pinch of rising inflation, which has led to a decrease in non-essential expenditure.
Furthermore British Retail Consortium (BRC) announced that spending in its members’ stores grew 3.9% year on year last month, significantly above the 1.1% drop a year before; nonetheless, sales were lower than the 5.2% gain reported by Reuters in April.
Moreover this might bring some solace to Bank of England (BoE) officials who have been concerned about the of core inflation due to labor shortages.
On the other side Governor Andrew Bailey of the Bank of England is likely to boost interest rates further in June in order to reduce inflation.
GBPUSD Technical Levels
| Daily SMA20 | 1.2454 |
| Daily SMA50 | 1.2456 |
| Daily SMA100 | 1.2303 |
| Daily SMA200 | 1.1998 |
