Pound Sterling Price News and Forecast: GBP remains firm despite growing concerns over UK demand outlook
|Pound Sterling remains firm despite growing concerns over UK demand outlook
The Pound Sterling (GBP) exhibits strength against its major peers, except the Swiss Franc (CHF), on Wednesday. However, the outlook of the British economy is uncertain as Bank of England (BoE) Monetary Policy Committee (MPC) member Catherine Mann is worried about the United Kingdom (UK) demand outlook and sees the need to accommodate financial conditions.
On Tuesday, Catherine Mann said in an interview with the Financial Times (FT) that demand conditions are quite a bit “weaker than has been the case”. Mann favored a bigger interest rate reduction in last week’s policy meeting in which the BoE unanimously decided to cut interest rates by 25 basis points (bps). Investors were surprised by Mann’s vote for a 50 bps interest rate cut as she has been an outspoken hawk. On it, Mann clarified in the interview that she wanted to communicate to traders “what we think are the appropriate financial conditions for the UK economy”. Read more...
GBP/USD Forecast: Pound Sterling bulls retain control after reclaiming technical hurdle
Following the bearish action seen at the beginning of the week, GBP/USD reversed its direction on Tuesday and gained more than 0.6%. Ahead of the key January inflation data from the US, the pair holds above key technical area.
The US Dollar (USD) came under selling pressure on Tuesday, allowing GBP/USD gain traction. The lack of fresh headlines surrounding US President Donald Trump's trade policy and Federal Reserve (Fed) Chairman Jerome Powell's hesitancy to offer fresh insight into the policy outlook helped market mood improve in the American session. Read more...
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