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GBP/USD recovers its recent losses registered in the previous session, trading around 1.2770 during the Asian hours on Thursday. The GBP/USD pair gains ground as the US Dollar (USD) corrects downwards after breaking its four-day winning streak despite higher US Treasury yields.The US Dollar Index (DXY), which measures the value of the US Dollar against its six major peers, trades around 106.50 with 2-year and 10-year yields on US Treasury bonds standing at 4.16% and 4.28%, respectively, at the time of writing.The US Dollar faces some challenges as the recent US CPI report seems not enough to keep the Federal Reserve (Fed) from cutting rates in December. The CME FedWatch Tool suggests nearly a 99% chance of Fed rate reductions by 25 basis points on December 18. Traders shift their focus on the US November Producer Price Index (PPI) for fresh impetus, which is due later on Thursday.US Consumer Price Index (CPI) rose to 2.7% year-over-year in November from 2.6% in October. The headline CPI reported a 0.3% reading MoM, in line with the market consensus. Meanwhile, the core CPI, excluding volatile food and energy prices, climbed 3.3% YoY, while the core CPI increased 0.3% MoM in November, as expected.In the United Kingdom (UK), the RICS Housing Price Balance surged 25% in November, up from a 16% rise in October, surpassing market expectations of a 19% increase. Released by the Royal Institution of Chartered Surveyors, this survey highlights trends in UK housing prices. It reflects the strength of the UK housing market, which often serves as an indicator of the broader economy due to its sensitivity to the business cycle.The Pound Sterling (GBP) gains ground due to rising market confidence in the Bank of England (BoE) to keep its interest rates unchanged at 4.75% in December’s monetary policy decision. BoE policymakers are anticipated to vote to keep interest rates unchanged. Traders are likely to focus on the UK’s October monthly Gross Domestic Product (GDP) data due on Friday.More By This Author:USD/CHF Eases From 0.8850 Highs Heading On The US Inflation Release Gold Price Extends Corrective Slide From Over Two-Week Top; Focus Remains On US CPI Report Gold Price Clings To Gain Around $2,670/Two-Week Top, Short-Term Bullish Bias Remains
