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GBP/USD Holds Steady Near 1.2750 Amid Market Anticipation of Key Economic Data

GBP/USD Holds Steady Near 1.2750 Amid Market Anticipation of Key Economic Data

GBP/USD continues to trade steadily around the 1.2750 mark during Tuesday’s Asian session, marking a second day of stability. The pair faces potential headwinds as the US Dollar (USD) strengthens on market caution ahead of the US Consumer Price Index (CPI) data release on Wednesday.

A recent survey by the Federal Reserve Bank of New York revealed that US consumers are navigating mixed economic expectations. The survey reported notable improvements in consumers’ financial outlook and perceptions of the federal fiscal position, along with shifting views on debt affordability and credit conditions.

Friday’s robust US November Non-Farm Payrolls (NFP) data showed a gain of 227,000 jobs, surpassing expectations, with Average Hourly Earnings rising by 0.4% MoM. These results have fueled speculation, with the CME FedWatch Tool indicating an 85.8% probability of a 25-basis-point rate cut by the Federal Reserve at its December 18 meeting.

Meanwhile, the British Pound (GBP) remains near four-week highs as traders focus on upcoming UK economic data and central bank meetings. Expectations for Friday’s data include a rebound in the UK economy for October and signs of recovery in the manufacturing sector. The Bank of England (BoE) is anticipated to keep interest rates unchanged at its December 19 meeting.

On Monday, BoE Deputy Governor Sir Dave Ramsden stressed the need for vigilance in navigating the heightened uncertainty surrounding the UK’s economic landscape, emphasizing the importance of adaptability in monetary policy decisions.