GBP/USD retreats sharply from a one-month high amid the emergence of some USD buying.Bears might still wait for a sustained break below the 1.2100 mark before placing fresh bets.
The GBP/USD pair witnessed a dramatic turnaround from the vicinity of mid-1.2200s, or a one-month high touched earlier this Friday. The retracement slide remains uninterrupted through the early North American session and dragged spot prices to a fresh daily low, around the 1.2100 mark in the last hour.
The US dollar stages a solid intraday recovery from its lowest level since July 5 and turns out to be a key factor exerting heavy downward pressure on the GBP/USD pair. A modest recovery in the US Treasury bond yields extends some support to the greenback, which gets an additional lift from stronger US Personal Consumption Expenditures (PCE report).
The upbeat data might have revived speculations for a 50 bps Fed rate hike move at each meeting in the remainder of this year. This, along with a modest pullback in the US equity futures, remains supportive of the intraday USD bounce. That said, it would be prudent to wait for some follow-through selling below the 1.2100 mark before placing bearish bets around the GBP/USD pair.
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GBP/USD closes in on 1.2100 after hot US inflation data
GBP/USD continues to push lower toward 1.2100 in the second half of the day on Friday. The data from the US showed that PCE inflation continued to rise at a stronger pace than expected in June, providing a boost to the dollar.
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