GBPUSD tays positive in the immediate term.
GBPUSD appears to have entered a consolidation phase near 1.2700 at the start of the week. In the absence of macroeconomic data releases, market participants will continue to examine Fed members’ comments.
Following a brief downward reversal on Thursday, GBPUSD regained momentum and achieved its highest level in nearly two months, above 1.2700, on Friday. Weekly, the pair increased by 1.4%.
The renewed selling pressure around the US The US dollar (USD) fueled the pair’s surge last week. Following the April Producer Price Index (PPI) and Consumer Price Index (CPI) statistics, investors began to price in a Fed policy reversal in September, putting pressure on the US dollar. According to the CME FedWatch Tool, markets believe the Fed will leave the policy rate steady in September.
Policymakers from the Federal Reserve will speak later in the day.
Later in the day, other Fed officials will give presentations, including Atlanta Fed President Raphael Bostic, Fed Governor Christopher Waller, and Fed Vice Chair Phillip Jefferson. If policymakers downplay the progress seen in inflation in April and reiterate that the policy would need to remain tight for longer, the USD may remain strong against its peers, limiting the GBPUSD’s upside.
UK Office for National Statistics will announce April inflation figure.
On Wednesday, the UK Office for National Statistics will announce April inflation figures. Later in the American session, the Federal Reserve will issue the minutes of the April 30-May 1 policy meeting.
