GBPUSD - Dollar, waiting for the release of the CPI index?!The GBPUSD currency pair is located between EMA200 and EMA50 in the 4H timeframe and is moving in its upward channel. The continuation of the trend of this currency pair will depend on the maintenance or failure of this channel.
If the upward trend continues due to the release of today's economic data, we can see a supply zone and sell within that zone with a suitable risk reward. In case of channel failure and downward correction, you can buy this currency pair within the specified demand zone.
According to a new report by the Federal Reserve Bank of New York, consumer inflation expectations in the United States showed some changes in November compared to October. One-year inflation expectations rose to 3%, up from 2.9% last month.
Additionally, three-year inflation expectations reached 2.6%, slightly higher than the 2.5% recorded in October. Five-year expectations also edged up from 2.8% to 2.9%.
The Federal Reserve’s survey indicates that participants anticipate a decline in costs for gasoline, rent, and food over the coming year.
Expectations about future government borrowing have also dropped significantly.
The report further highlights that many respondents are optimistic about their financial situation improving next year. This positive outlook has reached its highest level since February 2020.
Janet Yellen, the U.S. Treasury Secretary, has warned that Donald Trump’s tariff plans could disrupt prior efforts to curb inflation and lead to higher consumer prices. Speaking at the Wall Street Journal’s CEO Council, she stressed that broad tariffs could increase costs for American consumers and businesses dependent on imports.
Meanwhile, the U.S. dollar has performed impressively this year, supported by strong economic conditions. However, Morgan Stanley analysts, including David Adams, caution that holding long positions on the dollar may now be a mistake as the currency faces downside risks.
Bloomberg reports that while efforts to combat inflation have been largely successful, lingering price pressures could undermine confidence in further interest rate cuts.
Reuters has reported that the Bank of England intends to maintain its cautious stance and keep interest rates steady. Simultaneously, the European Commission has advised EU member states against granting the UK greater access to the bloc’s electricity market. This recommendation comes despite warnings from the energy sector about higher costs for consumers and slower progress toward green energy transitions.
In a policy document outlining the EU’s stance on future negotiations with the UK, the European Commission emphasized that the principle of “limited choice” should also apply to electricity trade. The document noted that the UK’s decision not to rejoin the single market has restricted deeper cooperation in the energy sector, and partial participation in this market would neither benefit the EU nor align with the European Council’s guidelines.
In October, British and European energy companies called for a revision of post-Brexit energy trade arrangements to establish a “green energy hub” in the North Sea. They warned that the current framework is not only inefficient but also jeopardizes shared commitments to generate 310 gigawatts of offshore wind power by 2050.
On Monday, the U.S. and UK announced a fresh wave of sanctions targeting what they described as the illicit gold trade. The UK claimed that this trade finances Vladimir Putin’s war efforts in Ukraine and fuels corruption.
The British government froze the assets of four individuals accused of gold smuggling, as well as another individual who had purchased over $300 million worth of Russian gold, generating revenue for the Russian government. In a statement, the UK’s Foreign Office said: “Illicit gold trade is an attack on the legitimate trade of a valuable commodity, fueling corruption, undermining the rule of law, and enabling human rights abuses, including child labor.”
