GBP/USD struggles to hold in the green territory

The US PCE inflation eased for November as expected. In the United States also, the Durable Goods Orders was disappointing. Meanwhile, the GBP/USD pair struggles to retain the 1.2038 mark as US dollar demand increase ahead of the long weekend.

Following a short-lived slide to 1.2022, which is a fresh daily low, the pair trimmed losses and flirted with daily highs. It currently trades in the 1.2040 price zone as speculative interest is still digesting mixed United States macroeconomic data.

The Personal Consumption Expenditures (PCE) Price Index rose by 5.5% YoY in November from 6.1% in October, further indicating easing inflationary pressures in the country.

Durable Goods Orders in the same month unexpectedly declined by a whopping 2.1% MoM, much worse than the 0.6% decline anticipated by market players. However, the core reading, Nondefense Capital Goods Orders excluding Aircraft, rose 0.2%, better than the unchanged reading expected.

The dollar initially appreciated with the news, then turned downwards, now rallying again on the back of fresh weekly highs in Treasury yields.

The yield on the 10-year note jumped to 3.728%, its highest for December, while the -year note yield advanced to 4.327%. Yields held on to gains ahead of Wall Street’s opening, while US indexes are poised to open with modest gains, following the lead of their overseas counterparts.

The British Pound is still weak after the latest macroeconomic releases confirmed the United Kingdom is suffering a recession that will likely extend well into 2023.