Pound Sterling Price News and Forecast: GBP/USD 1.2000 comes under threat amid renewed dollar strength
|GBP/USD Analysis: Bulls resilient near 1.2100 despite hawkish Fed, Brexit woes
The GBP/USD pair struggled to preserve its intraday gains and settled nearly unchanged for the day, just a few pips above the 1.2100 mark on Monday. Against the recent slump in the US Treasury bond yields, a slight improvement in the global risk sentiment and Friday's disappointing US ISM Manufacturing PMI undermined the safe-haven US dollar. This, in turn, was seen as a key factor that provided a modest lift to the major amid relatively thin trading volumes on the back of the Independence Day holiday in the US. The uptick, however, lacked bullish conviction and ran out of steam near the 1.2165 region.
The Fed's prospects for more aggressive rate hikes helped limit any deeper USD losses. It is worth recalling that Fed Chair Jerome Powell last week said that the US central bank remains focused on getting inflation under control and that the US economy is well-positioned to handle tighter policy. This, along with domestic issues, acted as a headwind for the British pound and kept a lid on any meaningful upside for the GBP/USD pair. Investors seem concerned that the UK government's controversial Northern Ireland Protocol Bill could trigger a trade war with the European Union amid the ongoing cost of living crisis. Read more ...
GBP/USD Forecast: 1.2000 comes under threat amid renewed dollar strength
With the dollar regaining its strength following the long weekend in the US, GBP/USD has turned south during the European trading hours on Tuesday. In case safe-haven flows continue to dominate the financial markets, the pair could test 1.2000.
Following Monday's choppy action, the US Dollar Index gathered bullish momentum and climbed to its highest level in nearly two decades above 106.00. The greenback finds demand in the risk-averse market atmosphere as investors grow increasingly concerned over a global recession. Read more ...
GBP/USD drops to fresh daily low, below mid-1.2000s amid aggressive USD buying
The GBP/USD pair came under some renewed selling pressure during the early European session on Tuesday and dived to a two-day low, just below mid-1.2000s in the last hour.
Following the overnight brief pause, the US dollar caught aggressive bids and rallied to a fresh 20-year peak amid the prospects for more aggressive rate hikes by the Fed. The bets were reaffirmed by Fed Chair Jerome Powell's remarks last week, saying that the US economy is well-positioned to handle tighter policy. Apart from this, a turnaround in the global risk sentiment provided an additional boost to the safe-haven greenback, which, in turn, exerted some downward pressure on the GBP/USD pair. Read more ...
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