GBP Price Forecast: GBP/USD May Struggle to Push Noticeably Higher

• S&P PMIs highlight growing customer confidence.
• UK economic docket looks very thin next week.
• The US dollar may have peaked.

GBP/USD continues to trade on either side of 1.2000 in fairly uninspiring trade with the US dollar the driver behind any short-term moves. The US dollar has been moving around this week as Fed speakers continue their hawkish narrative, aided by this week’s punchy core PCE reading that came in hotter than expected. On the flip side, the recent CB consumer confidence data (February) missed by a sizeable margin, adding to any dovish market outlook.

GBP/USD DAILY PRICE CHART – MARCH 3, 2023

The greenback has been supported by rising US Treasury yields with the rate-sensitive 2-year UST hitting 4.95% mid-week, a level last seen in July 2007. One technical indicator suggests however that US short-dated bond yields may have peaked.