Pound Sterling Price News and Forecast: GBP/USD gains positive traction during USD bullish consolidation phase
|GBP/USD trades with positive bias below 1.3400, remains close to multi-week low ahead of UK CPI
The GBP/USD pair ticks higher during the Asian session on Wednesday, though it lacks follow-through buying and remains below the 1.3400 round-figure mark. Moreover, spot prices remain close to a three-and-a-half week low touched on Tuesday and seem vulnerable to prolonging the recent downward trajectory witnessed over the past two weeks or so.
The US Dollar (USD) is seen consolidating its recent strong gains to the highest level since June 23 and is seen as a key factor lending some support to the GBP/USD pair. However, diminishing odds for a near-term reduction in borrowing costs by the Federal Reserve (Fed), amid concerns that US President Donald Trump's trade tariffs would boost inflation, should act as a tailwind for the buck. Read more...
GBP/USD declines steepens as hotter CPI bolsters Greenback
GBP/USD shed weight for the eighth straight session on Tuesday. Global risk appetite soured after US Consumer Price Index (CPI) inflation rose in June, casting a long, tariff-fueld shadow over investors that were hoping for a quick pivot into fresh rate cuts from the Federal Reserve (Fed) in the third quarter.
US CPI inflation rose through the tail end of the second quarter. Despite the figures mostly keeping in line with or beating median forecasts, investors are still feeling the pressure from rising price pressures. Annualized headline CPI inflation rose to 2.7% YoY in June, moving in the opposite direction of the Fed policy target range of 2%. With inflation pressures still simmering away in the background, already-thin market hopes for an early rate cut from the Fed have evaporated. Read more...
GBP/USD loses further ground after hot US CPI inflation print rocks rate cut bets
GBP/USD shed another two-thirds of one percent top-to-bottom on Tuesday, extending into an eighth consecutive day of Cable losses. The US Dollar (USD) caught a risk-off bid after US Consumer Price Index (CPI) inflation rose through June, reigniting fears of another pushback on the Federal Reserve's expected pace of rate cuts through the year-end.
US CPI inflation crept up through the end of the second quarter. Even though the numbers mostly met or beat expectations, investors still feel the pinch from rising prices. In June, the annualized headline CPI inflation rate increased to 2.7% year-over-year, drifting away from the Fed’s target range of 2%. With inflation still lingering, hopes for an early rate cut from the Fed have faded. Read more...
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