The GBP/USD currency pair continued its downward trajectory in the early American session on Thursday, influenced by a steady US Dollar and disappointing economic indicators from the UK. Meanwhile, Bitcoin's value experienced a slight dip after a significant rally, and gold prices climbed for the third consecutive day, surpassing the $2,700 mark. The recent publication of the US Consumer Price Index (CPI) data played a crucial role in shaping market dynamics.
Bitcoin, after surging by 4% following the release of the US CPI data on Wednesday, traded around $99,200 on Thursday. This slight decline comes after its impressive performance the previous day, which was driven by investor reactions to inflationary trends in the US. Traders remain alert to further developments, particularly as US Retail Sales data for December are set to be released on Thursday, potentially causing volatility in the markets.
Gold has been on an upward trend, recovering from initial weekly losses and rising above $2,700. This recovery aligns with the anticipation and subsequent release of the US CPI data, which often influences gold's appeal as a hedge against inflation. The precious metal's consistent rise over the past three days highlights its resilience amidst fluctuating market conditions.
In contrast, the GBP/USD pair struggled due to the combination of a steady US Dollar and less-than-encouraging economic data from the UK. The UK's GDP and industrial figures for November fell short of expectations, contributing to increased speculation about potential rate cuts by the Bank of England. These factors have created headwinds for the currency pair, which continues to face pressure in the current economic climate.
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