The GBP/USD pair has been in a tight range in the past few days.
The US dollar index pulled back even after the strong economic data from the United States. On Tuesday, housing numbers showed that prices rose in February after falling in the past few months. Additional data showed that building permits dropped by 7.7% in March, better than the expected drop of 8.8%. Further, new home sales jumped by 9.6% in March.
And on Wednesday, data showed that durable goods orders jumped in March after dropping in the previous months. Core durable goods orders rose by 3.2% on a year-on-year basis and by 0.3% on a MoM basis. This increase was better than what analysts were expecting. The statistics agency cited an increase in aviation products.
Therefore, there is a likelihood that the Federal Reserve will continue hiking interest rates in May. Expectations are that the bank will hike rates by 0.25% in May and then take a strategic pause. The only risk for this view is if the banking crisis continues in the coming months. This week, First Republic Bank shares crashed by more than 60% after the company revealed that it lost over $100 billion in deposits. As such, risks of more bank failures could dissuade the Fed against implementing more rate hikes.Therefore, the pair will react to the upcoming news from the US.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD Forex Signal: Extremely Bullish Above 1.1065The EUR/USD exchange rate continued rallying as the US dollar sell-off slide resumed.
Read more »
GBP/USD Forex Signal: Slowly Approaches the YTD HighThe British pound drifted upwards on Monday and Tuesday morning ahead of key economic numbers from the United States.
Read more »
GBP/USD Forex Signal: Head and Shoulders Pattern FormsThe GBP/USD pulled back as investors embraced a risk-off sentiment after the relatively strong US housing data and weak corporate earnings.
Read more »
EUR/USD Forex Signal: Bullish Above Shooting Star PeakThe EUR/USD pair jumped to the highest point since March 2022 as concerns about the banking sector continued.
Read more »
GBP/USD remains confined in a range, holds above mid-1.2400s ahead of US GDPThe GBP/USD pair struggles to gain any meaningful traction on Thursday and oscillates in a narrow trading band through the first half of the European
Read more »
GBP/USD Price Analysis: Needs acceptance above 1.2500 for a fresh rallyThe GBP/USD pair has delivered a breakout of the consolidation formed in a range of 1.2453-1.2477 in the early London session. The Cable has rebounded
Read more »