Pound Sterling Price News and Forecast: GBP/USD could correct lower in case 1.3750 resistance holds
|GBP/USD Forecast: Pound Sterling could correct lower in case 1.3750 resistance holds
GBP/USD extended its weekly rally and reached its highest level since October 2021 at 1.3770 on Thursday. The pair stays in a consolidation phase in the European session on Friday and fluctuates slightly below 1.3750.
The broad-based selling pressure surrounding the US Dollar (USD) fuelled GBP/USD's climb on Thursday. News suggesting that United States (US) President Donald Trump is planning to announce Federal Reserve (Fed) Chairman Jerome Powell's replacement early to undermine him triggered a USD selloff. Additionally, mixed macroeconomic data releases from the US further weighed on the currency. Read more...
GBP/USD move has 'gone too far'
The pound has jumped by 2% on the dollar so far this week, with the GBP/USD exchange rate (at the time of writing at least) trading around its highest level since all the way back in October 2021. We contest, however, that this move has almost nothing to do with the UK outlook or sterling itself, and is almost entirely a product of the bearish dollar narrative.
The moderately more upbeat June PMI figures aside, there's not been any major data releases out this week that would change the market’s view on Britain’s economy, which looks highly likely to slow rather sharply in the second quarter, following what was a very solid Q1. Read more...
GBP/USD traders eye core PCE and Fed commentary for clues on policy path
The GBP/USD pair enters the day in consolidation mode as markets brace for key U.S. data and Fed commentary. The spotlight is on the May Core PCE Price Index—set for release at 12:30 pm GMT—which could reinforce, or challenge current rate cut expectations. Forecasts call for a 0.1% monthly and 2.6% annual rise, matching April’s figures. As the Fed’s preferred inflation measure, any deviation could ripple through currency markets.
Core PCE Price Index (May) releases at 12:30 pm GMT (07:30 am EDT). Forecasts: +0.1% m/m, +2.6% y/y, matching April Fed Speeches & Events. Fed Governor Michael Barr speaking at Cleveland Fed Policy Summit (~1:15 pm EDT), then again ~4:00 pm EDT on community development/regional policy. 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.