GBP/USD hangs near daily low, around mid-1.2400s amid fresh USD buying.

GBP/USD meets with some supply on Thursday amid the emergence of some USD buying.A further rise in the US bond yields turns out to be a key factor lending support to the buck.

The USD maintains its bid tone and moves little following the Advance US Q1 GDP report.The GBP/USD pair attracts some sellers near the 1.2500 psychological mark during the early North American session and drops to a fresh daily low following the release of the US macro data. Spot prices, however, manage to rebound a few pips in the last hour and now trade with a mild negative bias, around the mid-1.2400s.

The US Bureau of Economic Analysis reported this Thursday that the economic growth decelerated from 2.6% annualized pace to 1.1% during the January-March period, missing estimates for a reading of 2.0%. Further details of the report revealed that the GDP Price Index edged higher to 4% in the same period from 3.9%, compared to estimates for a reading of 3.8%. On a quarterly basis, the Personal Consumption Expenditures (PCE) Prices rose to 4.2% from 3.7%, indicating an unexpected pickup in price pressures.

Furthermore, data published by the US Department of Labor (DOL) showed that Initial Jobless claims fell to 230K in the week ended April 22 as compared to the 246K previous and the 248K anticipated. This also marks the lowest level in three weeks. Nevertheless, the upbeat macro data reaffirms bets for another 25 bps lift-off at the next FOMC meeting in May and remains supportive of a further rise in the US Treasury bond yields, which underpins the US Dollar (USD) and exerts some pressure on the GBP/USD pair.

The downside, however, remains cushioned, at least for the time being, amid growing acceptance that the Bank of England (BoE) will also hike interest rates by 25 bps in May. This, in turn, warrants some caution before placing aggressive bearish bets around the GBP/USD pair and positioning for any meaningful downside. Traders also seem reluctant and now look forward to Friday’s release of the US Core PCE Price Index, the Fed’s preferred inflation gauge, which will play a key role in influencing the near-term USD price dynamics.

EUR/USD falls toward 1.1000 after US GDP

EUR/USD came under renewed bearish pressure and declined toward 1.1000 in the early American session. Despite the weak US GDP growth recorded in the first quarter, strong inflation and spending numbers in the report seem to be providing a boost to the USD.

EUR/USD News 

GBP/USD reverses direction after US data, falls toward 1.2450

GBP/USD has reversed its direction and turned negative on the day near 1.2450 amid renewed US Dollar strength. Markets seem to be shrugging off the weak economic growth recorded in the US in the first quarter due to the temporary negative impact of inventories.

GBP/USD News 

Gold falls below $1,990 as US yields push higher on US GDP data

Gold price fell sharply and broke below $1,990 with the immediate reaction to the US GDP data. Markets seem to be paying more attention to inflation-related components of the GDP report rather than the disappointing growth reading, boosting US yields and weighing on XAU/USD.

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