GBP/USD is still coming under pressure on Tuesday, trading well below the 1.2900 level and near new one-week lows. The United States shows an increase in Durable Goods Orders. At the same time on the other side of the Atlantic in the United Kingdom inflation pressures are easing. In February, the UK's annual Consumer Price Index (CPI) climbed by 2.8%, a decrease from January's 3%. In the United States, Durable Goods Orders increased 0.9%. This $2.7 billion increase pushed the $289.3 billion total up to $289.3 billion, making it far and away the highest amount for the month.
US Economic Indicators Show Growth
U.S. Durable Goods Orders, a measure of the activity to build the tangible stuff of the economy, jumped 0.9% in February. When you exclude transportation, new orders were up 0.7%, showing strong, broad-based growth across multiple sectors.
"Excluding defense, new orders increased 0.8%. Transportation equipment, also up two consecutive months, led the increase, $1.4 billion or 1.5% to $98.3 billion." – Census Bureau
The increase in orders is just one indication that the economic tide is turning. Transportation equipment is making an outsized impact in helping to drive this overall growth.
The US Dollar Index picked up marginally by 0.1% today, inching up to 104.32. It may have continued to trade against the top of its daily range above 104.00. These numbers point to a dour or awesome $ ragbag $ moderation in the rise of the dollar, even as new enterprises boom all around.
UK Inflation and Service Sector Insights
Inflationary pressures in the United Kingdom have calmed down. In February, the year-over-year Consumer Price Index (CPI) rose by 2.8%, a drop from January’s 3%. Even with this overall drop, the service sector continues to show inflation coming in a bit higher than economists anticipated for February.
Inflation in the services sector is accelerating further with an impending spike from the increase in employers’ National Insurance contributions. This change will continue to drive costs up across the industry.
At the beginning of January, the service sector was dealt one of its largest blows. So much so that despite broader inflationary pressures starting to reverse, inflation skyrocketed to 3.3%.
Gold Market Movements
In the gold market as well, prices are closing in on $3,020 Wednesday. But on a weekly basis, gold’s performance has taken a positive turn for the better. Following a drop at the start of the week on Monday, fuel prices are on the upswing.
Gold prices are more sensitive to global market dynamics and investor sentiment. Currency values and other economic indicators frequently underlie these shifts.