The GBP/USD currency pair defended the 1.2200 level during the European session on Thursday, showcasing resilience amid mixed economic indicators. Meanwhile, investors are keenly awaiting significant US economic data releases, including December retail sales and weekly jobless claims. Across the Atlantic, EUR/USD remains under pressure as recent US inflation data reinforces the dollar's robustness. This week could mark the fourth consecutive week of USD strengthening if current trends endure.
Disappointing UK GDP and industrial figures for November have weighed on the GBP/USD pair, contributing to its cautious stance. On the technical front, a new downward impulse to 1.0258 has emerged on the H1 chart, with a correction expected to target 1.0300. However, the possibility of a resumed downward wave aiming for 1.0210 and potentially extending to 1.0160 exists, supported by the Stochastic oscillator's signal line dropping below the 50 mark and moving towards 20.
The EUR/USD pair recently completed a corrective wave up to 1.0350 before forming a fresh downward impulse to 1.0258 on the H4 chart. Market outlook suggests a further downward trajectory, potentially targeting 1.0160. Despite this pressure, US Treasury yields have declined, exerting a negative impact on the USD.
The data-driven narrative continues as inflation statistics released earlier this week prompted investors to recalibrate their expectations regarding Federal Reserve interest rate cuts slated for 2025. US inflation data indicated moderate growth, aligning with market expectations and reinforcing the dollar's position.
In the cryptocurrency market, Algorand (ALGO) extended its gains, trading around $0.469 on Thursday after a significant rally of over 19% the previous day. The continued momentum in Algorand's price underscores broader investor sentiment towards digital assets amidst a backdrop of fluctuating economic indicators.