Pound Sterling Price News and Forecast: GBP/USD holds ground as the Pound steadies on BoE policy stance
|GBP/USD stays near 1.3350 as traders adopt caution due to UK inflation risks
GBP/USD holds ground after two days of losses, trading around 1.3350 during the Asian hours on Friday. The downside of the pair could be restrained as the Pound Sterling (GBP) may gain ground on the United Kingdom’s (UK) inflation risks and the uncertain Bank of England’s (BoE) policy stance.
BoE policymaker Megan Greene urged caution on rate cuts, suggesting a pause in November as risks to inflation have shifted to the upside. However, Governor Andrew Bailey signaled that more easing is still needed. "But exactly when that will be and how much it will be will depend on the path of inflation going down," Bailey added, while noting that there is some softening in the labor market, alongside cautiousness among consumers. Read more...
GBP/USD sinks below 1.3400 on strong US data, focus shifts to PCE
The GBP/USD ended Thursday’s session with losses of over 0.78%, seeming poised to test lower prices as a scarce economic docket in the UK would leave traders adrift to dynamics linked to the US Dollar. The pair trades below the 20, 50, 100 and 200-day SMAs, after puking below 1.3400 as Friday’s Asian session begins.
Serling fell to a four-week low of 1.3324 on Thursday after the release of macroeconomic news in the US, spurred a trim of Fed dovish bets, which boosted the Greenback. From a technical perspective, if GBP/USD slides beneath the 1.33 handle, the next area of interest would be the 200-day SMA At 1.3124. Read more...
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.