Pound lacks momentum on Friday amid lack of any data in UK docket and as a firm dollar is keeping sentiments in the pair dented. GBPUSD is quoting at $1.2621, largely unchanged on the day. The pair however still holds on the psychological $1.26 levels following comments from Bank of England rate-setter Catherine Mann that she is not convinced that the near-term deceleration in UKs headline inflation will continue. Supply chain disruption from hostilities in the Red Sea could quickly feed into companies' pricing decisions, exacerbating Britain's inflation problem, she said. Mann said her decision last week to vote to raise interest rates to 5.5% from 5.25% was "not easy". Most Monetary Policy Committee members voted to leave rates on hold, and one voted for a cut.
Meanwhile, the dollar index that measures the greenback against a basket of currencies is holding above 104 mark tracking benchmark US treasury yields standing at 4.15% after data on unemployment benefits again pointed to a resilient U.S. labor market. Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 218,000 for the week ended Feb. 3, the Labor Department said, less than expected. Next week is likely to witness good moves in the pair with a slew of important macro releases including jobs, inflation and GDP data. On the NSE, GBPINR futures are trading with marginally gains at 104.74.
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