Pound Sterling Price News and Forecast: GBP flattens
|Pound Sterling flattens while BoE Dhingra supports quick monetary expansion cycle
The Pound Sterling (GBP) trades sideways against its major peers on Tuesday as investors look for fresh cues about the likely monetary policy action by the Bank of England (BoE) this year. In the policy meeting earlier this month, the BoE reduced its key borrowing rates by 25 basis points (bps) to 4.5% and guided a gradual policy easing stance.
However, BoE Monetary Policy Committee (MPC) member Swati Dhingra favored a quick monetary expansion cycle due to the weak demand environment in her speech at Birkbeck on Monday. "I know 'gradual' has been interpreted in the media as 25 basis points (bps) per quarter, but cutting interest rates at this pace for the remainder of 2025 would still leave monetary policy in an undesirable restrictive position at the end of the year,” Dhingra said. She also warned that “consumption weakness is just not going away”, which is why she is favoring to “reduce the level of monetary policy restriction”. Read more...
GBP/USD Forecast: Pound Sterling looks to extend correction
GBP/USD turned south after advancing to a multi-month high at the weekly opening and closed marginally lower on Monday. The pair stays relatively quiet below 1.2650, while the technical outlook points to a loss of bullish momentum.
The upbeat market mood made it difficult for the US Dollar (USD) to find demand early Monday and helped GBP/USD push higher. In the second half of the day, the negative shift seen in risk sentiment supported the USD and weighed on the pair. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.