idea on a trade Nice H1 close doji rejection and the DXY is a sell The UK economy failed to grow in the entire month of April as manufacturing, industrial production and especially construction registered contractions. April’s data compared to April of 2023 witnessed a 0.6% increase, marginally lower than last month’s 0.7% increase.(GBP/USD) has managed to halt the recent decline spurred on by Friday’s hot NFP print in the US. The move may be due to a squaring off of positions ahead of what is a very uncertain and potentially volatile trading session. High impact data out of the US today (US CPI and the FOMC statement and forecasts) has the full attention of the market.
Stubborn inflation is likely to add to the loss of confidence amongst the committee when it comes to inflation returning to the 2% target. Hot monthly CPI for most of 2024 has forced the Fed to manage their expectations around the number and timing of Fed funds rate cuts this year. If this continues to be the case, GBP/USD may be vulnerable to a move lower but such a move could be limited by the fact the FOMC dot plot is due to be released a few hours later.