Pound Sterling Price News and Forecast: GBP/USD declines below 1.2800 as Fed maintains hawkish narrative
|Pound Sterling declines below 1.2800 as Fed maintains hawkish narrative
The Pound Sterling (GBP) falls below the crucial support of 1.2800 against the US Dollar (USD) in Thursday’s late European session. The GBP/USD pair corrected sharply after a rally to near a three-month high of 1.2860, which was inspired by the cooler-than-expected United States (US) Consumer Price Index (CPI) report for May.
The Cable pares decent gains as the US Dollar rebounds after the latest interest rate projections from Federal Reserve (Fed) policymakers in the June monetary policy meeting showed that there will be only one rate cut this year, against three anticipated in March. The Fed signaled fewer rate cuts due to robust labor market conditions, and price pressures remained stubbornly higher in the first quarter of the year. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, recovers further to 104.80. Read more...
GBP/USD Forecast: Pound Sterling needs to stabilize above 1.2830 to extend uptrend
GBP/USD gathered bullish momentum and reached its highest level since early March above 1.2850 on Wednesday. The pair erased a portion of its daily gains in the late American session but closed in positive territory for the third consecutive day. Early Thursday, GBP/USD struggles to preserve its bullish momentum and trades below 1.2800.
The US Dollar (USD) came under heavy selling pressure and fuelled GBP/USD's rally in the early American session following soft inflation prints on Wednesday. The Bureau of Labor Statistics (BLS) reported the Consumer Price Index (CPI) rose 3.3% on a yearly basis in May, down from the 3.4% increase recorded in April. Read more...
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