Pound Sterling Price News and Forecast: GBP/USD edges higher albeit lacks follow-through
|GBP/USD Price Analysis: Trades with modest intraday gains below 1.3100, bullish bias remains
The GBP/USD pair attracts some dip-buying during the Asian session on Tuesday and for now, seems to have stalled a two-day-old corrective slide from its highest level since April 2022, around the 1.3140 region touched last week. Spot prices, however, struggle to capitalize on the move and retreat a few pips from the vicinity of the 1.3100 mark, or a fresh daily peak touched in the last hour.
Bets that the Federal Reserve (Fed) will soften its hawkish tone and keep interest rates steady after the widely anticipated 25 bps lift-off in July continues to act as a headwind for the US Dollar (USD). Apart from this, a positive risk tone is seen as another factor undermining the safe-haven Greenback, which, in turn, assists the GBP/USD pair to regain positive traction. That said, speculations that the US central bank could stick to its forecast for a 50 bps rate hike this year hold back traders from placing fresh bearish bets around the USD and keep a lid on any meaningful upside for the major. Read more...
GBP/USD oscillates around 1.3070 ahead of key data events
The GBP/USD pair consolidates in a narrow range during the early Asian session on Tuesday as the market sentiment turns cautious ahead of the release of US Retail Sales and the UK Consumer Price Index (CPI). The major is trading around 1.3072, down 0.01% on the day.
The UK will release the Consumer Price Index (CPI) for June on Wednesday, which is expected to be 8.2% YoY, from 8.7% in May, while the core CPI is estimated to be 7.1%, unchanged from May. Market participants anticipate the Bank of England (BoE) will hike its interest rates by 50 basis points (bps) in August. However, the aggressive tightening policy from the BoE to bring inflation to the target level would dampen the economic prospects of Britain's economy. Read more...
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