Pound Sterling Price News and Forecast: GBP/USD builds on UK CPI-inspired rally
|GBP/USD outlook: Pound receives fresh support from hawkish shift in rate expectations as inflation rises
Cable jumped to a seven-week high in European trading on Wednesday, after UK inflation report showed unexpected rise in consumer prices, causing a hawkish shift in rate expectations, one day ahead of BOE policy meeting. Markets now expect a 25 basis points hike to 4.25%, fueling fresh rise of the pound, though Fed policy decision, due later today, will be also closely watched.
Fresh rise generates an initial signal of bullish continuation as the price action remains above broken pivotal Fibo level at 1.2201 (61.8% retracement of 1.2447/1.1802, also former tops of Mar 13/14) for the third straight day, adding to improved outlook. Read more...
GBP/USD Price Analysis: Builds on UK CPI-inspired rally, climbs to 1.2300 ahead of FOMC
The GBP/USD pair catches fresh bids on Wednesday and the buying interest picks up pace during the first half of the European session in reaction to the strong UK consumer inflation figures. The momentum lifts spot prices to a fresh high since February 02, with bulls now awaiting a sustained strength beyond the 1.2300 mark before positioning for any further appreciating move.
The hotter-than-expected UK CPI print adds pressure on the Bank of England (BoE) to hike interest rates by 25 bps at the very least on Thursday, which, in turn, boosts the British Pound. The US Dollar (USD), on the other hand, drops to a fresh multi-week low amid expectations for a less hawkish Fed and further pushes the GBP/USD pair higher ahead of the key central bank event risks. Read more...
GBP/USD Forecast: Hawkish BOE bets support Pound Sterling
GBP/USD has gathered bullish momentum and advanced toward 1.2300 early Wednesday, touching its highest level since early February. The pair's near-term technical outlook points to a bullish bias but the US Dollar's reaction to the US Federal Reserve's (Fed) policy announcements should influence the action in the American session.
The UK's Office for National Statistics reported earlier in the day that inflation in the UK, as measured by the Consumer Price Index (CPI), climbed to 10.4% on a yearly basis in February from 10.1% in January. This reading surpassed the market expectation of 9.8% by a considerable margin. The Core CPI, which excludes volatile food and energy prices, rose to 6.2% in the same period from 5.8%. Read more ...
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