The GBP/USD pair continues to show resilience below the 1.2900 round-figure mark and attracted some buyers who took some buying action during the Asian session on Monday (3/24). The spot prices are currently trading around the 1.2930 region, up nearly 0.10% for the day, and for now, seems to have snapped two consecutive days of the downtrend to one-and-a-half-week lows touched on Friday.
The US Dollar (USD) started the new week on a weaker note and stalled its three-day recovery move from multi-month lows, which, in turn, was seen as a key factor that acted as a tailwind for the GBP/USD pair. Despite the fact that the Federal Reserve (Fed) raised its inflation projections, investors seem convinced that a tariff-driven US economic slowdown could force the central bank to resume its interest rate-cutting cycle soon. This, along with a positive tone surrounding the US equity futures, seemed to undermine the greenback as a safe-haven.
On the other hand, the British pound (GBP) found support from the Bank of England's (BoE) relatively hawkish stance. In fact, the central bank cautioned against assuming a rate cut and also raised its forecast for inflation to peak this year. This suggests that the BoE will lower borrowing costs at a slower pace than other central banks, including the Fed, which lent additional support to the GBP/USD pair. Moreover, the recent break above the 200-day Simple Moving Average (SMA) for the first time since November favored bullish traders.
Moving ahead, traders now look forward to the release of flash PMIs from the UK and the US for some meaningful impetus. Apart from this, speeches by influential FOMC members will boost the USD demand, which, along with comments by BoE Governor Andrew Bailey, should produce short-term trading opportunities around the GBP/USD pair. That said, spot prices remain well within striking distance of their highest levels since November touched last week and the fundamental backdrop supports prospects for additional gains. (Newsmaker23)
Source: Fxstreet
The British pound (GBP) traded higher against other major currencies, except for the Antipodean currencies, on Wednesday. The British currency showed strength as market sentiment remained optimistic a...
The British pound (GBP) continued its strengthening against the US dollar (USD) for the third trading day on Tuesday. The GBP/USD pair reached a new three-week high around 1.3580 during the European t...
The pound was virtually unchanged on Monday (September 8th), after posting its biggest one-day rally against the dollar in two weeks on Friday, following surprisingly weak US jobs data that had reinfo...
GBP/USD rose off the mats on Wednesday, clawing its way back above the 1.3400 handle after general market sentiment recovered just enough footing to buoy Cable off of four-week lows below 1.3350. Alth...
GBP/USD retraces its recent gains from the previous session, trading around 1.3520 during the Asian hours on Tuesday. The pair depreciates as the US Dollar (USD) gains ground, driven by persistent inf...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday after tamer-than-expected producer price inflation last month calmed worries that price pressures...
European stocks closed mostly lower on Wednesday with losses from tech, consumer defensive companies, and miners as markets continued to assess the outlook on global rates and geopolitical risk. The Eurozone's STOXX 50 closed dropped 0.2% to 5,378...
If Israel failed to kill Hamas leaders in an air strike on Qatar on Tuesday, it would succeed next time, the Israeli ambassador to the United States said after the operation, which raised concerns it would torpedo efforts to secure a ceasefire in...
The United States (US) Bureau of Labor Statistics (BLS) will publish the 2025 preliminary benchmark revision to the Establishment Survey Data on...
Russian forces attacked a thermal power plant in the Kyiv region as part of an overnight attack, Ukraine's Energy Ministry said on Monday,...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...
European shares finished higher on Monday, while French stocks also rose as investors stayed calm in the run-up to a no-confidence vote later in the...