Market News

Sterling High: GBP/USD and GBP/JPY Aim for Further Gains

Sterling GBPUSD gains

Sterling excels: GBP/USD eyes gains against a strong USD, while GBP/JPY sustains bullish momentum for further advancement.

Pound Sterling Analysis (GBP/USD, GBP/JPY)

Market participants, digesting yesterday’s encouraging economic data, anticipate that the British Pound (GBP) will build on its recent gains against both the US Dollar (USD) and Japanese Yen (JPY). GBP/USD aims to sustain its hard-fought gains amid a resilient USD, while GBP/JPY sets its sights on an ambitious target, awaiting Japanese Consumer Price Index (CPI) data.

Yesterday’s UK Consumer Price Index (CPI) surpassed headline and core measures expectations, leading to downward revisions in interest rate expectations and supporting the pound. Despite persistent inflation concerns, analysts have noted similar trends in inflationary pressures in the UK, the EU, and the US.

However, experts suggest that the inflation surge is likely to be short-term, with disinflation anticipated as long as the Bank of England (BoE) can effectively manage services inflation. Higher tobacco prices, resulting from increased taxation following Jeremy Hunt’s Autumn Statement, are primarily responsible for the recent CPI increase.

Sterling High: GBP/USD and GBP/JPY Aim for Further Gains

GBP/USD Seeks to Hold Gains in the Face of Resilient USD

Today, GBP/USD trades slightly higher, aiming to breach the 1.2736 level. The recent strength of the US dollar, fueled by better-than-expected retail sales data for December, may present a challenge for further upside in the pair. Despite a choppier, sideways trading pattern since mid-December, technical indicators, such as the golden cross and moderate RSI levels, suggest the potential for additional upside.

Despite being considered a centrist, Raphael Bostic from the Federal Reserve could strengthen the dollar with remarks on persistent inflationary pressures, influencing the dollar’s recovery. As the economic calendar dries up towards the end of the week, GBP/USD may experience subdued price action.

Two-Year Gilt Yields Dip Following Initial Rise on Inflation News

Two-year Gilt yields initially rose in response to the news of stickier inflation in December. However, early morning trade during the London session indicates a slight easing, potentially undermining the recent uplift in the pound.

GBP/JPY Sets Ambitious Target Amid Bullish Momentum

GBP/JPY continued its bullish advance yesterday, eyeing 188.80 as the next resistance level. Despite trading slightly lower this morning, recent price action suggests that pullbacks are short-lived, followed by renewed bullish momentum. The yen has faced pressure due to easing wage growth and inflation data, providing the Bank of Japan with room to maneuver before considering significant policy changes. As GBP/JPY remains focused, market participants anticipate potential brief pullbacks amidst the upward trajectory.

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

A Closer Look at Trends in Global Stock Markets

Global indices like Nikkei 225, FTSE 100, and DAX 40 hit record...

Surging Markets: A Week of Record Highs and Key Risk Events Ahead

Last week's record highs in US stock markets driven by tech and...

AUD/USD in Focus: Resistance Levels and Inflation Data Awaited

The Aussie dollar faces resistance against the US dollar ahead of key...

USD/CHF: Choppy Price Action on the H4

USD/CHF – Technical Analysis- H4 Chart The chart shows that the price...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Global Stock Markets
Market News

A Closer Look at Trends in Global Stock Markets

Global indices like Nikkei 225, FTSE 100, and DAX 40 hit record highs but may consolidate amid economic uncertainties.

Surging Markets Week of Record Highs
Market News

Surging Markets: A Week of Record Highs and Key Risk Events Ahead

Last week's record highs in US stock markets driven by tech and AI stocks set a positive tone for investors.

Copyright © 2023 Forex Prop News. All Rights Reserved.