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 just below the mid-1.3400s during the Asian session, remaining largely unchanged throughout the day, although the fundamentals appear to be tilted toward bullish traders.
The Bank of England (BoE), as widely expected, cut interest rates by 25 basis points (bps) last week, bringing the benchmark interest rate down to 4%, its lowest level since 2023. However, the narrow 5-4 vote indicated greater resistance to a rate cut than the market had anticipated and forced traders to reduce their bets on aggressive BoE easing. This is likely to continue supporting the British Pound (GBP), which, along with the weak US Dollar (USD), acted as a driver for the GBP/USD pair.
The USD Index (DXY), which tracks the greenback against a basket of currencies, struggled to capitalize on Friday's modest gains from a two-week low amid growing speculation that the Federal Reserve (Fed) will lower borrowing costs in September. Furthermore, traders are also pricing in the possibility that the US central bank will cut interest rates at least twice by the end of this year. This should keep USD investors on the defensive and validate the positive short-term outlook for the GBP/USD pair.
Meanwhile, dovish expectations regarding the Fed were reaffirmed by comments by Fed Governor Michelle Bowman on Saturday, who said that three interest rate cuts were likely appropriate this year. Bowman added that the apparent weakness in the labor market outweighed the risk of higher inflation going forward. This, in turn, suggests that any corrections could be viewed as buying opportunities, which should limit the downside for the GBP/USD pair ahead of this week's key macro data releases.
The latest US consumer inflation data will be released on Tuesday, followed by preliminary UK Q2 GDP data and the US Producer Price Index (PPI) on Thursday. This crucial data will significantly impact spot prices and help determine the direction of future movements. Meanwhile, speeches from influential FOMC members could boost demand for the USD and the GBP/USD pair if there is no relevant market-moving economic data from the UK or US. (alg)
Source: FXstreet
The pound weakened towards 1.3150 against the US dollar in early trading on Monday, ending the previous three-day rally. The dollar's strength was driven by optimism that the longest US government shu...
GBP/USD remained just above 1.3000 on Wednesday after a brief dead-cat bounce following days of selling pressure. Heading into Thursday, the pair was struggling around 1.3050, down more than 3% from i...
GBP/USD fell again for a second session and is now trading around 1.3250 in the Asian session on Wednesday morning. The pound weakened after data from the British Retail Consortium (BRC) showed food p...
The pound sterling (GBP) exchange rate against the US dollar (USD) has continued to weaken for the fifth consecutive day and is now trading around 1.3340 in the Asian session on Thursday (October 23rd...
The British pound fell to around $1.34, its lowest in a week, after data showed the UK government borrowed £7.2 billion more than forecast in the first half of the fiscal year, underscoring the tough ...
The global silver price today (November 21) remained around $50-51 per troy ounce, slightly weaker than the previous day but still well above its early-year level. Fundamentally, silver's movement is again being pulled in two directions: on the one...
The Japanese yen held steady near 157 per dollar on Friday (November 21st), after previously weakening steadily. The currency began to "put on the brakes" after Finance Minister Satsuki Katayama signaled that the government could intervene if the...
The Hong Kong stock market opened lower in the morning session, with the benchmark Hang Seng Index falling 375 points, or 1.45%, to 25,460. Selling pressure was felt across the entire market. The Hang Seng China Enterprises Index fell 1.43% to...
European markets opened lower on Tuesday (November 18th) as global markets weakened amid renewed concerns over AI-related stocks.
The pan-European...
Initial jobless claims in the United States reached 232,000 for the week ending October 18, according to data from the US Department of Labor...
A divided Federal Reserve cut interest rates last month even as many policymakers cautioned that lowering borrowing costs further could risk...
US stocks finished higher on a volatile Wednesday session, reversing some of the sharp selling from the prior four sessions as markets digested a...