GBP/USD Price analysis: struggling to retain the green above 1.2000.

GBP/USD is struggling to retain the 1.2000 mark as US Dollar demand increases.

US Dollar demand increases ahead of the long weekend.Following a short-lived slide to 1.2022, a fresh daily low, GBP/USD trimmed losses and flirted with daily highs. It currently trades in the 1.2040 price zone as speculative interest is still digesting mixed United States macroeconomic figures. On the one hand, the Personal Consumption Expenditures (PCE) Price Index rose by  5.5% YoY in November from 6.1% in October, further indicating easing inflationary pressures in the country.

On the other, Durable Goods Orders in the same month unexpectedly declined by a whopping 2.1% MoM, much worse than the 0.6% decline anticipated by market players. However, the core reading, Nondefense Capital Goods Orders ex Aircraft, rose 0.2%, better than the unchanged reading expected.

US Dollar initially appreciated with the news, then turned south, now rallying again on the back of fresh weekly highs in Treasury yields. The yield on the 10-year note jumped to 3.728%, its highest for December, while the -year note yield advanced to 4.327%. Yields held on to gains ahead of Wall Street’s opening, while US indexes are poised to open with modest gains, following the lead of their overseas counterparts.

Meanwhile, the British Pound remains weak after the latest macroeconomic releases confirmed the United Kingdom is suffering a recession that will likely extend well into 2023.

GBP/USD technical perspective

GBP/USD is little changed on a daily basis as winter holidays kicked in, limiting volumes. Technical readings in the daily chart hint at further declines ahead s the pair develops below a bearish 200 SMA after breaking below it on Thursday. Technical indicators, in the meantime, develop within negative levels, lacking evident directional strength but showing no signs of bearish exhaustion and far above oversold readings.

The weekly low at 1.1991 is the immediate near-term support level, en route to 1.1950. A daily close near the latter could anticipate a steeper decline next week. Sellers are adding shorts at around 1.2080, the immediate resistance level, followed by 1.2140.

 1.0600 after US data  PREMIUM

EUR/USD clings to small gains above 1.0600 after US data

EUR/USD continues to trade in positive territory slightly above 1.0600 on Friday. The data from the US showed that the annual core PCE inflation declined to 4.7% in November and New Home Sales increased by 5.8%. These data, however, failed to trigger a reaction.


GBP/USD continues to fluctuate in daily range near 1.2050

GBP/USD has struggled to make a decisive move in either direction after the US data and stayed within its daily range at around 1.2050. The US Bureau of Economic Analysis reported that the Core PCE Price Index declined to 4.7% on a yearly basis in November.


Gold struggles to reclaim $1,800 as US yields edge higher

Gold price retreated modestly after having tested $1,800 during the American trading hours. Following the PCE inflation and New Home Sales data from the US, the 10-year US T-bond yield is up more than 1% on the day, not allowing XAU/USD to gather bullish momentum.

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