Pound Sterling Price News and Forecast: GBP seems baffled as investors remain mixed about interest rate peak
|GBP/USD Forecast: Pound Sterling could stretch higher if risk flows return after NFP
GBP/USD lost nearly 50 pips on Thursday snapped a three-day winning streak. Early Friday, the pair recovered above 1.2650 with markets gearing up for the US August jobs report.
Wall Street's main indexes edged lower on Thursday and the US Dollar Index staged a rebound after staying under bearish pressure in the first half of the week. This action, however, might have been a product of month-end flows since the market pricing of the Federal Reserve's (Fed) rate outlook remained virtually unchanged after the US data releases. Read more...
Pound Sterling seems baffled as investors remain mixed about interest rate peak
The Pound Sterling (GBP) struggles for a decisive move as investors await fresh cues about the interest rate peak from the Bank of England (BoE). The GBP/USD pair turns delicate as BoE policymakers, including Deputy Governor Ben Broadbent and Chief Economist Huw Pill, warned that sufficiently restrictive policy needs to be maintained longer to bring down the core Consumer Price Index (CPI) to the desired rate of 2%.
Investors hope that the UK economy cannot avoid a recession as higher interest rates are critically impacting the housing sector and factory activities. The UK’s economic outlook has deteriorated as core inflation is hovering near its all-time high due to labor shortages and strong wage growth. Read more...
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