Pound Sterling Price News and Forecast: GBP/USD slips on record debt, soft PMIs [Video]

Pound Sterling Price News and Forecast: GBP/USD slips on record debt, soft PMIs [Video]

Time Stamp: January 24, 2023 8:59 AM
Source Node: 1915735

GBP/USD stays bullish near December’s high [Video]

GBPUSD could not find enough buyers to pierce through December’s high of 1.2445, finishing Monday’s session with mild losses at 1.2375. The bulls, however, may not give up the battle, as the clear positive trajectory in the RSI and the MACD mirrors persisting buying interest. Yet, with the Stochastic oscillator flattening within the overbought region above 80, some caution is required. Read more …

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GBP/USD slips on record debt, soft PMIs

UK debt costs soared in December, sending the budget deficit to a record 27.4 billion pounds. This was sharply higher than the November reading of 18.8 billion pounds and the consensus of 17.3 billion pounds. The drivers behind the sharp upturn were rising interest payments and government subsidies for gas and electricity. The government’s bill for the subsidies in December was some 7 billion pounds. Despite the grim debt news, the pound remains steady, thanks to broad US dollar weakness.

UK PMIs for December didn’t help matters, as both the Services and Manufacturing PMIs came in below the 50 level, which indicates contraction. Manufacturing rose slightly to 46.7, up from 45.3 in November and above the forecast of 45.0 points. The Services PMI fell to 48.0, down from the November read and the forecast, both of which were 49.9 points. Read more…

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GBP/USD drops to 1.2300 mark amid modest USD recovery from multi-month low

The GBP/USD pair attracts some sellers following an early uptick to the 1.2415 area and turns lower for the second successive day on Tuesday. Spot prices retreat further from the highest level since June 2022 touched on Monday and drop to the 1.2300 round-figure mark, or a four-day low during the first half of the European session.

The US Dollar stages a modest recovery from a nine-month low and turns out to be a key factor exerting some downward pressure on the GBP/USD pair. The market sentiment remains fragile amid worries about the economic headwinds stemming from the worst yet COVID-19 outbreak in China. Furthermore, the protracted Russia-Ukraine war has been fueling recession fears. This, in turn, tempers investors’ appetite for riskier assets and drives some haven flows towards traditional safe-haven assets, including the buck. Read more…

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