Pound Sterling Price News and Forecast: GBP remains fragile ahead of key interest rate decision
|GBP/USD Forecast: Pound Sterling could push lower if 1.2830 is confirmed as resistance
Following Monday's indecisive action, GBP/USD edged slightly lower in the European morning on Monday. In the second half of the day, key macroeconomic data releases from the US could impact the US Dollar's (USD) valuation and drive the pair's action.
Following the disappointing Chinese PMI data, markets seem to be staying away from risk-sensitive assets, helping the USD stay resilient against its rivals. In the European session, the UK's FTSE 100 Index is down 0.4% and US stock index futures are losing between 0.3% and 0.4%. Read more...
Pound Sterling remains fragile ahead of key interest rate decision
The Pound Sterling (GBP) looks vulnerable as investors remain cautious ahead of the interest rate decision by the Bank of England (BoE), which will be announced on Thursday. The GBP/USD pair fails to discover strength as a widely anticipated interest-rate hike by the BoE will deepen recession fears. UK Treasury Advisers already warned that an aggressive rate-tightening cycle would dampen the economic outlook.
The BoE has no other alternative than to raise interest rates further as inflationary pressures in the United Kingdom region are four times the desired rate of 2%. The UK’s housing sector and factory activities have already come under pressure due to higher borrowing costs. Firms and households have postponed their credit requirements to avoid higher interest obligations. Read more...
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