GBPUSD pares recent losses on a weaker US dollar.
GBPUSD recovers its previous session losses, trading higher at 1.2650 during the Asian session on Friday.
The GBPUSD pair rose as the US Dollar (USD) fell and US Treasury yields fell. Furthermore, Bank of England (BoE) officials have been issuing hawkish signals all week, boosting the Pound Sterling (GBP). The BoE is expected to keep interest rates higher for a lengthy period of time, especially given that inflation is currently more than twice the rate of growth. The central bank’s goal.
Megan Greene of the Bank of England stated that interest rates will remain high in order to combat persistently high inflation.
Megan Greene, the Bank of England’s rate-setter, voiced concern over consistently high inflation, implying that interest rates may need to remain high for an extended period of time. This viewpoint contradicts with recent evidence indicating a possible economic slowdown.
Following recent increases, the 2-year US Bond yield has dropped to 4.67%, posing a challenge to the US Dollar Index (DXY). Despite the fact that the US dollar rose to 103.59 on Thursday, the DXY is trading down at 103.30.
Furthermore, the US Core Personal Consumption Expenditures Price Index (PCE) eased to 3.5% in October from 3.7% the previous month, meeting forecasts. The Core PCE Price Index fell to 0.2% from 0.3% the previous month. Furthermore, initial claims for the week ending November 24 reached 218K, somewhat lower than the predicted 220K but higher than the amended previous statistics of 211K (updated from 209K).
Investors will look for UK Nationwide House Prices.
On Friday, investors will look for UK Nationwide House Prices as well as the US ISM Manufacturing PMI for November. Furthermore, the speech of US Federal Reserve (Fed) Chairman Jerome Powell will be the focal point.
