- GBP/USD Slips Below 1.2700 Ahead of BoE Governor Bailey’s Speech
- GBP/USD Continues Decline for Fourth Straight Day
The GBP/USD pair has extended its decline to around 1.2685 during Thursday’s Asian session, as the U.S. dollar rallies to its highest level since November 2023, adding pressure to the pair. Traders are also eyeing an upcoming speech from Bank of England (BoE) Governor Andrew Bailey, set for later in the day.
On Wednesday, data from the U.S. Department of Labor showed the Consumer Price Index (CPI) met expectations, rising by 2.6% year-over-year in October. Core CPI, which excludes volatile food and energy prices, also matched forecasts with a 3.3% year-over-year increase. This steady inflation data supports expectations that the U.S. Federal Reserve (Fed) will stay on course to cut rates at its December meeting.
On Wednesday, GBP/USD continued its downward trend, trading below the 200-day Exponential Moving Average (EMA) as the pair closed in the red for the fourth consecutive session. The pound remained under pressure as the stronger U.S. dollar gained momentum following CPI data that failed to signal easing inflation but still met market forecasts.
Looking ahead, Thursday brings the U.S. Producer Price Index (PPI) report, expected to show an increase in business-level inflation to 3.0% year-over-year in October, up from 2.8%. On the UK side, traders are awaiting the release of third-quarter Gross Domestic Product (GDP) data, forecasted to slow to 0.2% quarter-over-quarter from the previous 0.5%.
