In the midst of a slight fall in the USD Index, GBPUSD is trying to recover for a break towards 1.2600.
After an upward movement in the early London session, the GBPUSD pair has since moved sideways about 1.2580. The US Dollar Index (DXY) has demonstrated a corrective move after encountering. Tough roadblocks around the 103.70 resistance. And the Cable is making efforts to resume its upward movement and retake the round-level resistance of 1.2600.
In the European session, S&P500 futures have gained additional gains . As the likelihood that the Federal Reserve (Fed) will adopt a neutral interest rate policy stance is soaring. The overall market mood is very upbeat as concerns about an American recession are reduced by the Fed chair Jerome Powell pausing his policy-tightening campaign. The likelihood of a US economic recession has decreased from its previous 35% likelihood to 25%.
The overall market mood is very upbeat as the Fed’s policy-tightening pause is allaying concerns about a US recession.
The US Consumer Price Index (CPI) data. Which will be released on Tuesday, is expected to keep the US Dollar Index (DXY) on edge. Estimates predict that the monthly headline CPI will increase by 0.3%. At a slower rate than the 0.4% seen in April. monthly core inflation rate progresses maintained at 0.4%.
Furthermore Given the strong demand for durable goods and services, Fed chair Jerome Powell. And his colleagues are concerned about the durability of core inflation. Investors should be aware that the US service sector accounts for two-thirds of the country’s total Gross Domestic Product (GDP).
There will probably be hints regarding the likely monetary policy action in BoE Bailey’s speech.
Investors are anticipating the publication of the United Kingdom Employment data (May) on the pound sterling front. According to predictions, the number of claimants is expected to decrease by 9.6K, down from the 46.7K addition that was reported in April. In comparison to the previous report’s 3.9% figure, the unemployment rate for the past three months is now 4.0%.
Moreover the speech by Bank of England (BoE) Governor Andrew Bailey will be in the spotlight in addition to the UK Employment figures. BoE Bailey will probably give hints about the expected next move in monetary policy.
