GBP/USD climbs on risk appetite improvement, awaiting UK/US data
- GBP/USD rises 0.13% on upbeat market mood, steady USD.
- Despite printing poor UK retail sales, a strong UK inflation report keeps GBP/USD stable, with Wall Street's performance as a key driver.
- The US Dollar Index (DXY) up 0.07%, limits the Pound's advance, though it remains resilient.
- San Francisco Fed President Daly indicates current policy is appropriate and rate cuts wouldn't impact inflation progress.
The Pound Sterling (GBP) climbed late in the North American session against the US Dollar (USD) up by 0.13%, sponsored by an improvement in risk appetite as shown by US stocks registering gains between 0.25% and 0.36%.
An upbeat sentiment underpins the GBP/USD amid firm US Dollar
Wall Street is trading with gains as a tailwind for risk-perceived currencies like the Pound, which, despite weakening last Friday on a bad retail sales report, a hot inflation report on January 17, would likely keep the GBP/USD underpinned amid the lack of catalysts in the US economic docket. Meanwhile, an uptick in the US Dollar Index (DXY) of 0.07% up at 103.31, capped the major’s advance, after hitting a daily high of 1.2732.
Last Friday, the San Francisco Fed President Mary Daly said that policy is appropriate and that if the Fed lowered rates, they would not impact the progress in inflation achieving its 2% target. Ahead in the week. In the meantime, last week’s economic data supports a soft landing scenario, as strong retail sales, optimism among American households, and a strong labor market outshined mixed US housing figures.
This week UK’s economic docket will feature S&P Global Flash PMIs on Wednesday, alongside the UK’s Business Confidence indicator. On the US front, the calendar will feature PMIs, Q4’s 2023 Gross Domestic Product, housing data and inflation figures.
GBP/USD Price Analysis: Technical outlook
