GBP/USD is trading at 1.27376, 0.11% down since previous day close. GBP/USD has fallen for the second consecutive day and reached a one-week low during the Asian session. The US Producer Price Index (PPI) indicates inflation and cooled expectations for early interest rate cuts by the Federal Reserve. The current market pricing suggests a greater chance of the US central bank cutting interest rates at the June policy meeting. Traders are waiting for more cues about the Fed’s rate-cut path before positioning for the next leg of a directional move for the USD. As seen in the chart, the pair has been in a down trend, hence continuation of downtrend is expected.

US100 is trading at 18215.25, 0.31% down since previous day close. U.S. stock index futures fell due to higher-than-expected inflation readings, putting markets on edge ahead of a Federal Reserve meeting next week. Technology stocks, particularly chipmakers exposed to artificial intelligence, saw steep losses, with NVIDIA Corporation down 0.6%. Nasdaq 100 Futures fell 0.2%, while Dow Jones Futures fell 0.1%. Energy stocks, including Chevron, Exxon Mobil, and ConocoPhillips, rose, while chipmaking stocks saw profit-taking as AI-fueled rallies dwindled. As seen in the chart, The index has rejected after maintaining a strong momentum, and a bearish phase has begun.

XAU/USD is trading at 2168.2, 0.35% up since previous day close. The Gold price faces uncertainty over the Federal Reserve’s rate-cut path, with geopolitical risk and risk-off impulse supporting the safe-haven metal. The market is pricing in a 60% chance that the Fed will cut interest rates at the June policy meeting, helping limit losses for the non-yielding yellow metal. The Gold price has gained support from June Fed rate cut bets and softer risk tone, while the focus remains on the upcoming FOMC meeting next week. Technical analysis suggests bulls have the upper hand above $2,150 pivotal support, while the $2,178-2,180 region may act as a strong barrier.