The GBPUSD pair surrendered its intraday gains and fell back to near 1.2730 in Friday’s New York session as the Cable comes under pressure amid cautious market mood. The S&P 500 opened with some losses, exhibiting that the risk-appetite of investors is weak. The US Dollar consolidated in a tight range, with investors focusing on … Read more
The UK election’s influence on the pound is likely to be limited amid widespread expectation of a Labour victory, according to the CEO of a leading independent financial advisory and fintech. The prediction from Nigel Green, deVere Group chief executive, comes as Britain heads to the polls on Thursday, July 4, with the current opposition Labour Party … Read more
The US Dollar is holding steady early Wednesday, as investors gear up for key macroeconomic events that could significantly impact the currency’s valuation. The Bureau of Labor Statistic will release the Consumer Price Index data for May in early U.S. trading. Later in the day, the Federal Reserve will announce monetary policy decisions and publish … Read more
The GBPUSD pair weakened to 1.2695 in early Asian trading on Thursday due to a stronger US Dollar supported by higher US yields and lower bets of a Federal Reserve rate cut in September.
The GBPUSD pair is trading around 1.2710 as financial markets await the release of the UK Consumer Price Index (CPI) and FOMC Minutes. Federal Reserve officials are cautious about the timing of interest rate cuts due to hotter-than-expected inflation data. Bank of England Governor Andrew Bailey expects a rate cut in the future. The UK CPI is estimated to show a decrease in April compared to the previous meeting. The reports could impact the timing of the first rate cut.
The Pound Sterling gained 0.04% against the US Dollar, trading at 1.2703. The GBPUSD pair cleared resistance levels and momentum favors buyers, but downside risks remain. To continue bullish, GBPUSD must stay above 1.2700, with resistance at 1.2803 and 1.2893. If the price falls below 1.2700, it could retest support levels at 1.2634, 1.2594, and 1.2584.
The GBPUSD pair rose near 1.2688 due to weaker US CPI inflation data. Inflation in the US eased slightly in April, with the CPI rising 3.4% on a yearly basis. The softer inflation data raised the odds for a Fed rate cut in 2024, leading to a weaker dollar and supporting the GBPUSD pair. The UK employment data showed deteriorating job market conditions, and Bank of England policymakers are concerned about high service inflation potentially stalling progress in the disinflation process.
The GBPUSD pair is trading around 1.2550 in Asian markets on Monday, with the Sterling-Dollar appreciation attributed to recalibrated expectations for Federal Reserve interest rate cuts in 2024 following lower-than-expected US jobs data. The US economy added 175,000 jobs in April, signaling a slowdown from the previous month. The Fed is now expected to enact its initial rate cut in September, while the Bank of England is expected to maintain rates unchanged at 5.25% during Thursday’s meeting. Investor sentiment regarding interest rate cuts by the BoE has been postponed to September due to concerns about robust wage growth in the UK. BoE Governor Andrew Bailey expressed optimism about meeting the 2% inflation target.
The GBPUSD pair is holding positive ground near 1.2520 in early trading in Asia, supported by a softer US Dollar. The US Federal Reserve is expected to leave interest rates unchanged, with speculation that the first cut might not come until September. The Bank of England may start lowering borrowing costs in its June meeting, as Governor Andrew Bailey mentioned the possibility of two or three rate cuts this year.