**GBP/USD Holds Steady Around 1.3325 After Volatile Trading Triggered by Economic Data**
*Adapted and expanded from the original article by VT Markets at vtmarkets.com/live-updates/following-a-turbulent-session-due-to-economic-data-gbp-usd-remains-stable-around-1-3325/*
The GBP/USD currency pair experienced notable volatility in recent trading sessions, responding to the latest rounds of economic data releases from both the United Kingdom and the United States. Despite this turbulence, cable ended the session hovering near the 1.3325 level, a testament to the resilience of the pound and the current equilibrium established by market participants. This article provides a comprehensive analysis of the factors influencing GBP/USD during the session, the key data points affecting sentiment, technical outlooks, and the prospects moving forward.
## Recap of the Latest GBP/USD Session
The pound sterling (GBP) exchanged erratically against the US dollar (USD), with the GBP/USD pair swinging significantly through the intraday session. The volatility mirrored the market’s reaction to a slew of critical data releases, which provided traders with fresh signals regarding future monetary policy directions and the economic outlook for both countries.
### Highlights of the Turbulent Trading Session
– **GBP/USD opened the session with cautious optimism**, but sentiment shifted with the release of high-impact economic data.
– **Traders responded to UK and US macroeconomic figures**, prompting choppy trading as the market absorbed mixed signals.
– **The currency pair ultimately stabilized near 1.3325** as the initial data-inspired moves faded and liquidity-driven flows dominated into the session’s close.
## Key Economic Data that Shaped Market Sentiment
### United Kingdom: Growth and Inflation Signals
Recent UK-based data releases have played a key role in shaping how market participants view the pound’s near-term prospects, especially regarding growth momentum and inflation risks.
#### UK Retail Sales
– **Retail sales in the UK came in below consensus expectations**, highlighting persistent consumer uncertainty.
– The weaker retail sales reading signaled softness on the high street, raising concerns about the sustainability of economic recovery in the UK as inflation pressures and cost-of-living challenges persist.
– For traders, disappointing retail figures typically translate into lower expectations for aggressive policy tightening by the Bank of England (BoE).
#### Consumer Confidence and PMI Data
– **UK consumer confidence surveys pointed to ongoing caution among households** amid elevated inflation and rising energy costs.
– **PMI surveys suggested signs of stabilization but reflected a fragile recovery**, limited by ongoing supply-side constraints and moderating domestic demand.
– Market participants weighed these releases with caution, given persistent uncertainties surrounding growth prospects.
#### Inflation Trends
– **UK inflation remained uncomfortably high**, leading to market speculation about further rate hikes from the Bank of England.
– However, the economic data points to a delicate balancing act for the BoE: supporting growth while curbing inflation.
### United States: Dollar Strength Driven by Rate Outlook
In parallel, the US dollar’s trajectory has been heavily influenced by American macroeconomic data, feeding into global risk sentiment and cross-border currency flows.
#### US GDP and Employment Data
– **US economic releases depicted ongoing resilience**, with recent GDP data reaffirming the underlying strength of the world’s largest economy.
– **Labor market statistics, including jobless claims and nonfarm payrolls, have generally supported the case for a robust recovery**.
– The durability of the US economic recovery has underpinned expectations that the Federal Reserve will continue on its path of policy tightening.
#### Inflation and Fed Policy
– **US inflation readings, which remain elevated by historical standards, reinforced the case for a hawkish Federal Reserve**.
– Market participants have been recalibrating their expectations for the pace and scope of interest rate hikes, directly impacting dollar strength.
## Technical Analysis: GBP/USD
### Price Action and Chart Structure
After a tumultuous session, GBP/USD:
– **Found support near the
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