Pound Sterling Price News and Forecast: GBP/USD faces barricades around 1.1250 as hawkish Fed bets soar
|GBP/USD propped up in pre-open APAC on BoE Bailey weekend comments
GBP/USD is set to open regular forex hours on the bid as indicated by pre-open markets in the Asia Pacific with the pair up over 0.9% into 1.1270s. Cable closed on Friday offered at 1.1177 and down 1.2%. As explained here, BoE Gov Bailey: Stronger rates response needed to fight inflation, GBP/USD back above 1.1230 pre-open, the Bank of England Governor Andrew Baily said on Saturday that inflationary pressures might require a stronger interest rates response from the central bank than it had envisioned in August.
"We will not hesitate to raise interest rates to meet the inflation target," Bailey said at an event on the sidelines of the International Monetary Fund Meetings in Washington.
GBP/USD faces barricades around 1.1250 as hawkish Fed bets soar
The GBP/USD pair has picked offers in the Tokyo session firmly as the risk-on mood has started fading. The kick-start of the US quarterly earnings season delivered a rebound move in S&P500 on Monday after a bearish Friday but has eased some gains now.
The US dollar index (DXY) has attempted a rebound after dropping below the critical support of 113.00. While the 10-year US Treasury yields are displaying a subdued performance. Robust bets for a 75 basis point (bps) interest rate hike by the Federal Reserve (Fed) have defended the downside bias for yields till now. According to the CME FedWatch tool, the chances for a 75 bps rate hike have climbed to 99.4%.
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.