GBPUSD gains ground as the US Dollar falls after two days of advances.
GBPUSD attempts to recover after its three-day winning streak came to an end in the previous session. Trading moderately higher around 1.2500 during Thursday’s Asian session. The pair encountered difficulties in the previous session. Influenced by the stronger US Dollar (USD) following US economic data releases. Investors appear to see sustained inflation in the United States, along with a slowing economy.
The US Dollar Index (DXY) measures the value of the US dollar. After two days of advances, the price has dropped to approximately 103.70. The US dollar continued to fall after the release of mediocre US GDP statistics. Although momentum was fading as equity prices rose.
US jobless claims fell to 209K from 233K the previous week, and the UoM Consumer Sentiment Index hit 61.3 instead of the expected 60.5.
On Wednesday, US Jobless Claims data showed a larger than expected reduction for the week ending November 17. With Initial Claims falling to 209K from 233K the previous week.
Furthermore, Durable Goods Orders fell by 5.4% in October, vs 3.1% projected. The University of Michigan Consumer Sentiment Index for November. On the other hand, exceeded expectations, reaching 61.3 instead of the expected 60.5.
Jeremy Hunt, the UK Chancellor of the Exchequer, detailed proposals to decrease debt, lower taxes, and incentivize labor.
The UK Chancellor of the Exchequer, Jeremy Hunt. Released the Autumn Statement, announcing objectives to decrease debt, slash taxes, and incentivize labor. He emphasized the partnership with the Bank of England (BoE) to reach the Office for Budget Responsibility’s (OBR) 2.0% inflation target by 2025. Despite predicting a beneficial impact on inflation and GDP, Hunt recognized a lowered growth forecast of 0.7%, down from the prior OBR projection of 1.8% in March.
On Thursday, the preliminary S&P Global/CIPS Purchasing Managers Index (PMI) data for November in the United Kingdom will be announced. In addition, US markets will be closed on Thanksgiving Day. The preliminary S&P Global Manufacturing and Services PMI for November will be released on Friday, with a decrease expected.
