GBPUSD: Dollar slides lower after CPI data; Sterling is supporte

Updated
The dollar steadied in early European trade on Friday as investors focused on mixed U.S. consumer inflation data and the potential impact of the FBI's interest rate cut. Future Federal Reserve System.
As of 4:25 p.m. ET (9:25 p.m. Japan time), the dollar index against a basket of six other currencies was trading steady at 102.022, down from Thursday's high of 102.76 (a five-month low). Although it has fallen from a certain point of 100.61, it is still above it.
U.S. consumer prices rose 0.3% in December, according to data released Thursday. The annual rate of increase was 3.4%, exceeding expectations of 0.2% and 3.2% increases, respectively. increase. However, the dollar received little support from this, as the "core" CPI, which excludes volatile food and energy prices, fell again, suggesting underlying inflation remained subdued.
Federal Reserve officials have sought to downplay the possibility of early rate cuts, with Cleveland Fed President Loretta Mester saying Thursday that the latest CPI numbers indicate it may be too early for the central bank to cut rates. Major interest rate cuts in March.
But most traders still expect the Fed to start cutting rates as early as March.
"A rate cut in March is still priced in by more than 60%, and we still see near-term vulnerability in risk assets from this move," ING analysts said in a note. The new decision is too restrictive. ”

All eyes are now on the US producer price index, which will be released in late trading, with the index expected to rise 0.1% in December, bringing the annual rate of increase to just 1.3%.
In Europe, the pound/dollar pair rose 0.1% to 1.2775 after data released on Friday showed the British economy grew slightly more than expected in November. The country's GDP rose 0.3% this month, beating expectations for a 0.2% increase.
Note
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TP1: 1.2740
TP2: 1.2710

SL: 1.2820
Note
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Note
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