GBP/USD recorded a light increase around 1,2085. It was caused by the varied data and weakening US dollar along the Asian session on Tuesday trading moment.
Lately, FT or the Financial Times shared the UK purchase numbers which showed a 50 percent increase than the one happened in 26 of December last year. This was inline with what people are expected.
However, reports sayr that pedestrian traffic on the highway fel byl 25.3%. It is especially if people compared it to before the pandemic in 2019, while for shopping malls it fell by 36.9%.
On the other hand, the United States Core Personal Consumption Expenditure Price Index (PCE), largely known as the Fed's favorite inflation gauge, matched its 4.7% year on year forecast.
Several Data Showed an Increase
The data above is for November compared to 5.0% previously. Furthermore, Durable Goods Orders for the month marked a contraction of 2.1% compared to the forecast of -0.6% and the previous reading of 0.7%.
More importantly, non-Defence Capital Goods Orders outside aircraft also showed an increase of 0.2%. It was better compared to expectations of 0.0% and a revised down of 0.3% earlier.
In addition, the Federal Reserve's (Fed) Bank of Atlanta's GDP Now tracker rose to show annual growth of +3.7%. That was for the fourth quarter (Q4) compared to its previous forecast of +2.7%
It should be noted that China canceled the COVID quarantine rules for incoming travelers, starting from January 08. That decision was in turn triggered a risk-on atmosphere in the market.
GDP Scored a Downtrend near 104.10
The news joins geopolitical fears emanating from Russia and North Korea to illustrate cautious optimism in the market. As a result, S&P 500 Futures rose 0.60% intraday to 3,892.
In the other places, the U.S. 10-year Treasury yields remained weaker at around 3.74%. For the US Dollar Index (DXY) scored a three-day downtrend near level 104.10 level.
On the broader side, the recent UK key data also did not help the Bank of England (BOE) to remain hawkish. Besided that, the bullish bias over the GBP/USD pair remains limited.
Even so, the holiday season and lack of key data or events may join the recent optimistic sentiment to support GBP/USD bulls. People should check, wait, and see for the further information.
Gold Tried to Survive
Gold price or it is also known as the XAU/USD have surpassed Friday's highs around $1,804.00. These are expected to hold above psychological resistance of $1,800.00 in the Tokyo session.
The precious metal is expected to continue its upward momentum amid an increase in the risk appetite of market participants. However, this commodity have to fave several challenges ahead.
The risk profile has turned positive as market participants bet on a future decline in United States inflation. It was led by a slowdown in the level of the US Personal Consumption Expenditure Price Index (PCE).
The decline in consumption spending reflects that household demand has been trimmed and will be offset by lower prices for goods and services. That is why; the analysts warned market participants to be ready.
DXY had Fallen Sharply
The condition above led to a recovery at the S&P500 on Friday. In addition, the decline in demand for durable goods supports expectations of a decline in inflation going forward.
Meanwhile, the US Dollar Index or known as the DXY has fallen sharply near 103.75. That was happened after struggling to cross the nearest resistance at 104.00.
The situation above was as a slowdown in household spending may force the Federal Reserve (Fed) to cut interest rate peaks ahead.
The yield on the 10-year United States Treasury has fallen further closer to 3.73%. Various kinds of changes happened are considered as normal because of the global condition.
