The British Pound has shown gains of 0.21% against the US Dollar despite higher US Treasury yields failing to support the Greenback. Currently, the GBP/USD pair is trading at 1.2703 after bouncing off a daily low of 1.2644. Investors are closely watching the pair as it faces resistance at the 1.2700 level.
In Friday’s American session, the Pound Sterling turned sideways after reaching a fresh monthly high of 1.2700 on Thursday. The GBP/USD pair is struggling to maintain its upward momentum as focus shifts to the upcoming release of the United Kingdom Consumer Price Index (CPI) data for April, scheduled for Wednesday. Traders will be paying close attention to this data for any potential impact on the Pound’s performance.
During the early Asian session on Friday, the GBP/USD pair saw modest gains near 1.2670. At the same time, the USD Index (DXY) made a slight recovery after dropping to multi-week lows near 104.00 in the previous session. The Federal Reserve has maintained a cautious stance on inflation and the possibility of rate cuts this year. Market participants are eagerly awaiting speeches from Fed officials Kashkari, Waller, and Daly later in the day for further insights.
Overall, the British Pound’s performance against the US Dollar has been relatively steady, with the Pound showing resilience despite fluctuations in US Treasury yields. Investors will continue to monitor key economic data releases, such as the UK CPI data, for potential impacts on the Pound’s movement. Additionally, speeches from Federal Reserve officials could provide further guidance on the future direction of the GBP/USD pair.
