GBP/USD holds above 1.2900 as traders brace of US CPI data
The Pound Sterling (GBP) consolidates within familiar levels against the US Dollar (USD) amid a scarce economic docket on Monday. Key United States (US) inflation data and the United Kingdom's (UK) Gross Domestic Product (GDP) figures are due later in the week. GBP/USD trades at 1.2915, up 0.04%.
Sterling steady amid US inflation concerns and UK GDP anticipation
Sentiment remains dismal due to concerns about US President Donald Trump's trade policies. On Friday, he said that his policies could lead to economic turbulence in the short term due to undergoing a “period of transition” because what he’s doing is very “big.”
In the meantime, fears that the US economy could be tipped into a recession or, worse, a stagflationary scenario, keep investors leaning into safe-haven currencies like the Swiss Franc (CHF) and the Japanese Yen (JPY). Consequently, expectations that the Federal Reserve (Fed) could ease policy have risen, with market participants estimating 80 basis points of easing towards year-end, revealed data from the Chicago Board of Trade (CBOT).
Meanwhile, the Greenback extended its losses, with the US Dollar Index (DXY), which tracks the performance of the buck against a basket of six other currencies, down 0.14% at 103.76.
The New York Fed Consumer Sentiment Survey revealed that inflation expectations for one year in February increased from 3% to 3.1%. For the three—and five-year periods, they remained unchanged at 3%. Americans expect price increases in gas, rent, and food.
This week, the US economic docket will feature the JOLTs Job Opening on Tuesday, followed by the release of the Consumer Price Index (CPI) on Wednesday. Across the pond, GBP/USD traders will eye GDP figures on Friday.
Source: Fxstreet
