Pound Sterling Price News and Forecast: GBP/USD bulls stay on top in the 1.36 areas
|GBP/USD bulls stay on top in the 1.36 areas, eyes on the Fed, BoE and UK politics
GBP/USD is trading at 1.3627 and higher by some 0.24% after rising from a low of 1.3585 to a high of 1.3648. Besides domestic drivers, the pound has benefitted from a pullback in US yields and the greenback. US Treasury yields are retreating from near two-year highs on 2-year and 10-year notes. The focus this week, in the absence of many data drivers, has been the surge in US yields and a recovery in the UIS dollar. Investors are prepared for a widely expected interest rate increase in March. Sterling, meanwhile, edged higher after UK data on Wednesday showed British inflation rose 5.4% in December, to its highest level in 30 years. Read more...
GBP/USD Forecast: Next bearish target aligns at 1.3530
The British pound has failed to capitalize on the hot UK inflation data out on Wednesday and GBP/USD is consolidating Tuesday's losses near 1.3600. The unabated flight to safety and the broad-based dollar strength suggest that the pair is unlikely to stage a convincing rebound in the near term. The UK's Office for National Statistics announced earlier in the day that the Consumer Price Index (CPI) climbed to 5.4% on a yearly basis in December from 5.1% in November. This print surpassed the market forecast of 5.2% but the Producer Price Index - Input (PPI) declined to 13.5% from 15.2% in the same period, not allowing GBP/USD to gain traction. Read more...
GBP/USD outlook: Sterling bounces on rising expectations for another rate hike as inflation hits
Cable regained traction and bounced on Wednesday, signaling an end of three-day pullback, sparked by a double rejection at 200DMA (1.3733) last week. Pound was boosted by UK CPI data which showed that inflation in Britain continued to rise and hit the highest level in nearly 30 years in December, offsetting policymakers’ general view of transitory process and boosting hopes for another BoE’s rate hike on Feb 3 monetary policy meeting. 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.