Pound Sterling Price News and Forecast: GBP/USD edges lower on the dovish BoE policy outlook
|GBP/USD remains subdued below 1.3150 ahead of UK flash Q3 GDP data
GBP/USD remains subdued for the third successive session, trading around 1.3120 during the Asian hours on Thursday. Traders await the United Kingdom (UK) flash Gross Domestic Product (GDP) data for the third quarter due later in the day.
The Pound Sterling (GBP) faced challenges against its peers amid growing expectations that the Bank of England (BoE) will cut interest rates in December. BoE policymaker Megan Greene stated on Tuesday that wage settlement data for next year is higher than desired and expressed concern about persistent inflation in the UK, suggesting that monetary policy may need to be more restrictive. Read more...
GBP/USD falls towards 1.3100 as UK political tensions weighs on Sterling
The Pound Sterling (GBP) tumbles during the North American session on Wednesday against the US Dollar (USD) as reports emerged that Prime Minister Keir Starmer’s leadership was questioned, ahead of the release of the UK’s fiscal budget. The GBP/USD pair tumbles over 0.34% to 1.3105 at the time of writing.
UK newspapers cited some allies of the Prime Minister on a feared plot, but the PM distanced himself from a briefing by unnamed allies that he would fight any leadership bid, according to Reuters. Health minister Wes Streeting, who was mentioned to challenge Starmer, denied the plot and said to Sky News, “I'm not going to demand the Prime Minister's resignation.” In addition to that, a weaker jobs report revealed on Tuesday increased the chances of a Bank of England (BoE) rate cut in December. In the last meeting, BoE’s Governor Andrew Bailey sided with the hawks on a 5-4 vote split. However, the jump of the Unemployment Rate to 5%, and wages growth easing, prompted traders to discount a 25 basis points rate cut by the BoE at the December meeting, with odds standing near 90%, according to Prime Market Terminal data. Read more...
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