-
GBP/USD remains calm before a slew of data releases from both countries.
-
UK GDP and Industrial Production both are expected to face a 0.1% decline.
-
US CPI and Core CPI adhered to expectations, with a year-on-year increase of 3.1% and 4.0%, respectively.
GBP/USD hovered above 1.2550 in the Asian session on Wednesday, showing braceway movements thanks to a barrage of data releases from both countries. The GBP/USD pair experienced significant volatility in the previous session, driven by employment data from the United Kingdom (UK) and inflation figures from the United States (US).
The UK Office for National Statistics revealed that November’s claimant count change rose to 16.0K from the previous 8.9K, but came in below expectations of 20.3K. In addition, October employment changes fell by 50K from 54K previously.
Investors are expecting more data on Wednesday, with UK monthly gross domestic product (GDP) and industrial production both expected to fall 0.1% in October. Moreover, on Thursday, the Bank of England (BoE) is expected to provide a hawkish hold, leaving interest rates unchanged at 5.25%.
On the other hand, market participants are awaiting the release of the US producer price index (PPI) and the Federal Reserve’s (Fed) interest rate decision after the North American session. The US dollar (USD) experienced a moderate decline and recovery following the release of moderate Consumer Price Index (CPI) data from the United States (US).
On Tuesday, the US Bureau of Labor Statistics revealed that the US Consumer Price Index (CPI) rose 0.1% month-on-month and 3.1% year-over-year in November. These numbers matched market expectations, suggesting that inflation was in line with forecasts. US core CPI experienced an increase of 0.3% month-on-month and 4.0% year-on-year, meeting expected levels.
The Federal Open Market Committee (FOMC) is expected to maintain its current policy stance at its upcoming December meeting. Investors will likely pay close attention to comments from Federal Reserve (Fed) Chair Jerome Powell, seeking insight into possible changes in interest rates for the coming year.
GBP/USD: ADDITIONAL IMPORTANT LEVELS
