Pound Sterling Price News and Forecast: GBP/USD BoE's view on inflation
|GBP/USD Forecast: Seems susceptible to status-quo BoE amid COVID-19/Brexit woes
The GBP/USD pair gained some positive traction for the fourth consecutive session on Thursday, albeit lacked any strong follow-through buying. The US dollar remained on the defensive through the early European session amid mixed signals on US inflation. This, in turn, was seen as a key factor that extended some support to the major. The Fed Chair Jerome Powell said on Tuesday that inflation is rising due to pent-up demand and supply bottlenecks and that the price pressures should ease on their own. Separately, Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman said that the high inflation in the US would last longer than expected, though agreed that the price increase will prove temporary. Read more...
GBP/USD outlook: BoE's view on inflation and bond buying to define fresh direction
Cable is holding withing a narrow range on Thursday, following strong three-day advance as investors await the outcome of BoE policy meeting.
The central bank is expected to leave its interest rate at a record low, but investors will focus on BoE’s stance against rising inflation.
The consumer prices rose above the central bank’s 2% target and threaten of further rise, driven by accelerating recovery of the Britain’s economy, but the BoE still sees faster price growth as transitory. Read more...
GBP/USD drops to 1.3900 mark, fresh session lows post-BoE
The GBP/USD pair witnessed some aggressive selling in the last hour and dropped to the 1.3900 neighbourhood, or fresh session lows after the Bank of England announced its policy decision.
As was widely expected, the BoE left its monetary policy settings unchanged at the end of June meeting on Thursday. In the accompanying statement, the central bank termed the rise in inflation as transitory and said that it did not want to undermine the recovery by premature tightening. Read more...
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