Pound Sterling today - GBP/USD is attempting to recover after a three-day rally was halted in the previous session, trading slightly higher around 1.2500 during the Asian session on Thursday.
 
This currency pair faced challenges in the previous session, influenced by the strengthening of the US Dollar (USD) following the release of US economic data. Investors seem to be paying attention to the ongoing inflation in the US, accompanied by a slowdown in economic growth.
 
The US Dollar Index (DXY) retraced after recording gains for two consecutive days, trading lower around 103.70 at the time of writing. The greenback continued its correction after the release of US economic data, which, although considered moderate, lost momentum amid rising stock prices.
 
The US Initial Jobless Claims data released on Wednesday showed a larger-than-expected decline for the week ending November 17, with claims falling to 209,000 from the previous 233,000.
 
Additionally, Durable Goods Orders in October experienced a larger-than-expected drop, falling by 5.4% compared to the forecast of 3.1%. However, the University of Michigan's Consumer Sentiment Index for November exceeded expectations, reaching 61.3 compared to the projection of 60.5.
 
Jeremy Hunt, the UK Chancellor of the Exchequer, announced the Autumn Statement outlining measures to reduce debt, implement tax cuts, and provide job incentives.
 
He highlighted cooperation with the Bank of England (BoE) to achieve an inflation target of 2.0% by 2025, as projected by the Office for Budget Responsibility (OBR). While expecting a positive impact on inflation and Gross Domestic Product (GDP), Hunt acknowledged a revision in growth forecasts, with GDP expected to grow by only 0.7%, down from the OBR's previous projection of 1.8% in March.
 
The preliminary S&P Global/CIPS Purchasing Managers' Index (PMI) data for November in the UK will be released on Thursday. Additionally, US markets will be closed on Thursday for Thanksgiving. On Friday, the US will release the preliminary S&P Global Manufacturing and Services PMI for November, with expectations of a decline.
 
Warning!
 
This analysis is based on fundamental and technical perspectives from reliable sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research regarding other forex information as a reference for your trading.
 
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