The Pound Sterling (GBP) extends its winning streak for the fifth trading day against the US Dollar (USD) at the start of the week. The GBP/USD pair jumps to near 1.3480 due to the continued underperformance from the US Dollar, which is dragged by increasing expectations of interest-rate cuts by the Federal Reserve (Fed).
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades 0.17% lower to near 98.00.
The US Dollar underperforms as traders have become increasingly confident that the Fed will reduce interest rates in the September policy meeting. According to the CME FedWatch tool, there is an 88% chance that the Fed will cut the federal funds rate by 25 basis points (bps) to the range of between 4.00% and 4.25%.
Fed members have started arguing in favor of unwinding monetary policy restrictiveness as labor market conditions are cooling down. Over the weekend, Fed Governor Michelle Bowman said at the Kansas Bankers Association signaled that the soft Nonfarm Payrolls (NFP) report for July has increased her confidence of three interest rate cuts this year.
"With economic growth slowing this year and signs of a less dynamic labor market becoming clear, I see it as appropriate to begin gradually moving our moderately restrictive policy stance toward a neutral setting," Bowman said.
Source: FXstreet
The GBP/USD pair started the new week on a calm note, consolidating its relatively strong recovery from the 1.3140 area, its lowest level since April 14, reached earlier this month. Spot prices traded...
GBP/USD extended recent bullish momentum on Thursday, gaining over two-thirds of one percent on the day and climbing above key technical indicators as market rebalance both a weaker US Dollar (USD) an...
The GBP/USD surges during the North American session, though trading below an eight-day high reached at 1.3436 after the Bank of England (BoE) decided to cut interest rates on a close vote split, sign...
Sterling rose against a weakening dollar on Thursday with the markets watching whether the Bank of England will maintain its "gradual and careful" language on the pace of policy easing at its meeting ...
The GBP/USD climbs solidly during the North American session, up by 0.37% ahead of the Bank of England's (BoE) meeting and as traders digest the recent Nonfarm Payroll figures, and over the weekend de...
The US dollar rose against its major trading partners early Monday as markets look ahead to inflation and retail sales data for July this week. There are no US data scheduled for release Monday, but surprise appearances by Federal Reserve...
Oil prices were steady on Monday, after falling more than 4% last week, as investors looked ahead to talks between the U.S. and Russia later this week on the war in Ukraine. Brent crude futures were up 5 cents to $66.64 a barrel at 1003 GMT, while...
Silver prices fell to $37,845 on Monday afternoon, pressured by easing geopolitical tensions after US President Donald Trump announced a meeting with Russian President Putin this week. The easing of global risks has reduced interest in safe-haven...
European stocks closed firmly higher to record sharp gains in the first week of August as markets continued to assess the outlook of the European...
New Delhi has put on hold its plans to procure new U.S. weapons and aircraft, according to three Indian officials familiar with the matter, in...
US stocks closed higher on Friday, with the S&P 500 up 0.8%, and the Nasdaq climbing nearly 1%, while the Dow gaining 206 points. Technology...
U.S. stocks edged higher Friday as investors digested Trump's new selection to temporarily fill a vacancy on the Fed's Board of Governors and...