Pound Sterling Price News and Forecast: GBP/USD bulls remain at the mercy of USD price dynamics
|GBP/USD storms through key 1.2250 resistance ahead of BoE’s Bailey
GBP/USD has started a new week with a bang, extending the previous week’s uptrend into the third straight day on Monday. Pound Sterling bulls benefit from a broadly weaker US Dollar, as risk sentiment remains in a firmer spot so far this session.
The Asian stocks track the Wall Street rally, in the wake of easing US inflation and expectations of a dovish Federal Reserve (Fed) policy path. Meanwhile, the latest data from the CME Group showed that hedge funds are betting on a rally in the Pound Sterling at the start of 2023, which is underpinning the sentiment around the currency pair. Read more...
GBP/USD Forecast: Bulls remain at the mercy of USD price dynamics, ahead of BoE’s Bailey
The GBP/USD pair struggles to capitalize on its positive move and retreats from the vicinity of the 1.2300 mark, or a one-month high touched earlier this Monday. The pair slides back below the 1.2200 round figure during the early European session and is pressured by a solid US Dollar recovery from a fresh multi-month low. Worries about a deeper global economic downturn continue to keep a lid on any optimism. This is evident from the cautious mood around the equity markets, which is seen driving some haven flows towards the greenback. Read more...
GBP/USD pulls back from one-month peak in the 1.2220s ahead of speech by BoE’s Bailey
The GBP/USD pair is losing ground in the early European Session on Monday, falling to around 1.2180 at the time of writing. After making a new high for the month a few hours earlier the pair has suddenly reversed course and is dropping rapidly; it is not down 0.36% for the day.
The US Dollar has rebounded from a fresh seven-month low as thin liquidity due to it being a public holiday, Martin Luther King Jr. Day, in the US, as well as technical selling at the key 200-week Simple Moving Average (SMA) cause heightened volatility. After bidding the market ever higher, traders appear to be putting the brakes on overdone US Dollar shorts. Nevertheless, a growing acceptance that the Fed will soften its hawkish stance maintains pressure on the world's reserve currency and dims its outlook. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.