- GBP/USD bounces off weekly lows and reclaims 1.2300 on a soft US Dollar.
- The Producer Price Index in the UK cools down, sparking speculation that the Bank of England could tighten but not as aggressively as foreseen.
- Thursday’s US economic docket would feature GDP, unemployment claims, Durable Good Orders, and core PCE.
The GBP/USD solidly climbs and trims two days of consecutive losses after hitting a weekly low of 1.2263 on Wednesday. Risk aversion is the game’s name, while the US Dollar (USD) is pairing some of its earlier losses, underpinned by US bond yields rising. The GBP/USD is trading at 1.2384, clinging to gains of 0.42%.
UK’s Producer Price Index eases, ahead of the BoE’s next week meeting
During the European session, the GBP/USD slid to the lows of the day at 1.2282 amidst news that the UK’s Producer Price Index (PPI) for December cooled the most since April 2020, which would ease pressures for the Bank of England (BoE). Input prices paid by factories dropped -1.1% MoM, while the year-over-year data dropped 1.5% from 18% to 16.5%. Regarding Output prices, it fell -0.8% MoM beneath estimates for a 0.1% gain, while on an annual basis, it fell to 14.7% from 16.2%.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.