GBP/USD and EUR/USD to React to U.S. Inflation Numbers and Wage Figures Next Week

The GBP/USD may look risky to traders due to the tough and volatile action seen last week.[0] If the support levels of the GBP/USD maintain their current values, this could spur bullish speculation in the currency pair.[0] Should the 1.20375 level endure on Monday and stay an essential turning point before Tuesday’s essential U.S. economic information, this could be a captivating point for the GBP/USD to respond.[0]

The GBP/USD experienced a steep and distressing drop for those who had taken a bullish stance.[1] It is recommended that those who think the GBP/USD has been too heavily sold take steps to manage their risk.[1] Traders who are conservative may want to observe trading at the start of this week to ascertain whether the GBP/USD can remain steady and start to gradually increase in worth.[1] If the GBP/USD is able to sustain the 1.21500 mark at the beginning of the week and gain some upward traction, traders might be drawn to the 1.22000 region and beyond.

Should the EUR/USD demonstrate lasting support shortly and U.S inflation figures appear weaker than anticipated, the currency pair may rapidly experience upward motion.[2] Risk management must be employed by speculators in the days ahead, yet if the EUR/USD demonstrates its strength after the release of Tuesday’s U.S inflation figures, 1.07000 could conceivably be attained in a timely manner.[2] Traders should pay close attention to the EUR/USD data that will be released this Tuesday.[2] Should the EUR/USD surpass 1.07300 and maintain its value, traders may be hopeful for further gains and a potential to reach last week’s highs.

The Bank of England policymakers will pay closer attention to next week’s wage figures as they look for indications of “inflation persistence”.[3] Our economics team has discussed that a March rate hike could be dependent on wages and developments in the service sector.[3] In March, our final house call will be a 25bp increase.[3]

At the Economic Club of Washington on February 7th, Fed Chairman Jay Powell cautioned that the Federal Reserve may have to raise interest rates more than anticipated due to the strong labor market numbers, as it may take a prolonged period to reestablish inflation.[4]

0. “GBP/USD: Weekly Forecast 12th February – 18th February”, 12 Feb. 2023,

1. “GBP/USD: Weekly Forecast 5th February-11th February”, 5 Feb. 2023,

2. “EUR/USD: Weekly Forecast 12th February – 18th February”, 12 Feb. 2023,

3. “FX Daily: The waiting game is on” ING Think, 10 Feb. 2023,

4. “Weekly market update – Markets race ahead, riding for a fall?” Viewpoint, 9 Feb. 2023,