GBP/USD loses traction around 1.2430 amid the firmer US dollar on Friday.
The Fed’s hawkish comments boost the Greenback against the GBP.
BoE’s Greene said rate cuts were not imminent and that inflation remains too high.
The GBP/USD pair remains on the defensive near 1.2430 during the early Asian session on Friday. The downtick of the major pair is backed by the stronger US Dollar (USD) as the strong US economic data and hawkish remarks from the Federal Reserve (Fed) officials have triggered the speculation that the US central bank will delay interest rate cuts to September.
On Thursday, Atlanta Fed President Raphael Bostic said that US inflation is too high and the central bank still has a way to go on inflation. Bostic further stated that he’s comfortable being patient and rate cuts are likely by year end. New York Fed President John Williams emphasized that the Fed is data-dependent and noted that he doesn't feel an urgency to cut rates. Investors are now pricing in nearly 66% odds that the Fed will cut its rate in September, according to the CME FedWatch Tool.
About the data, the US Initial Jobless Claims for the week ending April 13 increased below market expectations, rising by 212,000 from the previous week of 212,000. Meanwhile, the Philadelphia Fed Manufacturing Index jumped to 15.5 in April from 3.2 in March, beating the estimation of 1.5. Finally, US Existing Home Sales dropped by 4.3% MoM to 4.19 million from 4.38 million, worse than the anticipated 4.2 million.
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