The British pound bounced off the inflection point at $1.2730, forming a double top with a previous peak. PCE data ahead.
The Bank of England buoyed the currency higher after Governor Bailey dampened hopes of rate cuts in the near future.
The sterling shot up to $1.2505 earlier in the week only to get a rejection from mid-term resistance as technical tools came into play.
The UK economy flatlined in the third quarter, latest GDP data showed, suggesting a possible downturn after Q2 data came in positive.
The British currency enjoyed strong buying momentum last week when and Monday when it shot up to near $1.25.
For a fifth straight month, the inflation gauge has been retracting, reaching its lowest point since August 2022.
The dollar turned sharply higher on Tuesday despite markets staying confident the Federal Reserve won’t bump rates further this year.
Elevated oil prices contributed to the upside, but falling food prices weighed to the downside. Final outcome: flat rate.
The FOMC minutes are expected to reveal key insights into the Fed’s projected timeline of interest rates.
The British currency has been struggling to overturn its downward trend. Can the jobs report give it a boost tomorrow?
The Bank of England bucked the trend in its rate increases last week after 14 consecutive raises. The news keeps hammering Sterling bulls.
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