- The US PCE Price Index for February, aligning with market forecasts, shows a yearly increase of 2.5% and a monthly rise of 0.3%.
- Core PCE figures also meet expectations, indicating stable inflation.
- Investor focus shifts to upcoming employment data, which could impact future rate-cut decisions.
- In today’s trading session, GBP/USD is hovering around 1.2640, marking a slight increase of 0.14% as investors digest February’s latest US Personal Consumption Expenditures (PCE) data.
US inflation experienced a marginal uptick in February, reaching 2.5% annually, as indicated by the PCE Price Index, which aligns with expectations. This uptick from January’s 2.4% meets market forecasts, with a 0.3% increase from the previous month, slightly below the anticipated 0.4%. Similarly, core PCE, excluding food and energy, rose by 2.8% annually, aligning with predictions, with a monthly increase of 0.3%. The upward revision of January’s core PCE figures suggests continued inflation, potentially influencing the Federal Reserve (Fed) to maintain higher interest rates. Future policy decisions may hinge on upcoming employment data, potentially impacting the timing and scale of rate cuts.
In light of this, robust employment figures prompt Fed policymakers to postpone rate cuts beyond June, possibly reducing the forecasted cuts for 2024 from three to two, which could favour the US Dollar.
GBP/USD Technical Analysis
On the daily chart, the Relative Strength Index (RSI) for GBP/USD indicates selling momentum, hovering in the negative territory at 44. Although the Moving Average Convergence Divergence (MACD) histogram shows diminishing bearish momentum, caution prevails among bulls.
Looking at a broader perspective, the pair remains below the 20 and 100-day Simple Moving Averages (SMAs) but above the 200-day SMA, suggesting continued bullish strength despite current conditions.
![](https://editorial.fxstreet.com/miscelaneous/_GBP_USD_2024-03-29_10-43-17-638473174607320839.png)
GBP/USD
OVERVIEW | |
---|---|
Today last price | 1.264 |
Today Daily Change | 0.0016 |
Today Daily Change % | 0.13 |
Today daily open | 1.2624 |
TRENDS | |
---|---|
Daily SMA20 | 1.2719 |
Daily SMA50 | 1.2678 |
Daily SMA100 | 1.2653 |
Daily SMA200 | 1.259 |
LEVELS | |
---|---|
Previous Daily High | 1.2655 |
Previous Daily Low | 1.2586 |
Previous Weekly High | 1.2804 |
Previous Weekly Low | 1.2575 |
Previous Monthly High | 1.2773 |
Previous Monthly Low | 1.2518 |
Daily Fibonacci 38.2% | 1.2612 |
Daily Fibonacci 61.8% | 1.2629 |
Daily Pivot Point S1 | 1.2588 |
Daily Pivot Point S2 | 1.2553 |
Daily Pivot Point S3 | 1.252 |
Daily Pivot Point R1 | 1.2657 |
Daily Pivot Point R2 | 1.269 |
Daily Pivot Point R3 | 1.2726 |