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 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.
European markets and US futures are trading higher as investors await two important events that will shape trading activity for the rest of the month. The Dow Jones chart shows bulls taking control, while Airbnb’s weak guidance indicates a potential slowdown in economic activity. The Bank of England is under pressure to lower interest rates, and US unemployment claims data could impact the market. Gold prices are influenced by the dollar index and Fed’s monetary policy, while the OPEC cartel’s meeting on June 1 will be crucial for oil prices.
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.