2024-05-28 14:30:17The British Pound was a little higher against the United States Dollar on Wednesday, although it seems less comfortable close to current, two-month peaks.in the United Kingdom came from the British Retail Consortium’s May snapshot. That found inflation falling back to normal levels, with its 0.6% rise the weakest since November 2021.
Indeed, Minneapolis Federal Reserve President Neel Kashkari said he couldn't rule that out while he didn’t expect rates to rise. However, he also said that borrowing costs could remain at their current level for an extended period. The Dollar might have benefitted more if Kashkari had been a voting member of the Open Markets Committee this year. His comments are also more hawkish than some other Fed speakers’ have been lately.
Apart from UK election news flow, Sterling traders haven’t got many domestic cues left to anticipate this week. German inflation numbers are coming up later, and there may be some spillover action into GBP’s impressive revival from the lows of late Apil has stalled at least for now at the highs of March 21. However, GBP/USD is unsurprisingly starting to look a little overbought judging by the stochastic oscillator. This may simply mean that some pause for consolidation is needed before a realistic assault on the recent highs can be made. If retracement is limited to the 1.2640 support region, then it may well mean another move higher.