GBP/USD cycled familiar territory on Tuesday as markets weigh rate cuts.
Sterling traders are buckling down for a key print in UK CPI inflation.
UK labor figures and Retail Sales promise a hectic back half of the trading week.
GBP/USD churned close to recent highs on Tuesday as markets readjusted odds of a rate cut from the Federal Reserve (Fed). A decline in US Retail Sales capped off a recent batch of US data, implying price pressures have finally eased enough that the Fed may get pushed into a rate-cutting cycle in September.
US Retail Sales slumped to a flat 0.0% in June, matching forecasts and falling from the previous month’s revised 0.3%. Softening US Retail Sales was the final feather in the cap for rate-cut-hungry markets, which piled into bets of a rate cut when the Federal Open Market Committee (FOMC) gathers for its rate call on September 18.
Slumping Retail Sales growth adds on to a batch of Consumer Price Index (CPI) inflation data last week that reignited broad-market hopes for a September rate cut. According to the CME’s FedWatch Tool, rate markets are now pricing in nearly 100% odds of at least a quarter-point rate trim in September, with up to three rate cuts in total for 2024.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.