Pound Sterling Price News and Forecast: GBP/USD is struggling to extend its recovery further
|GBP/USD surrenders gains as US promises expansion of financial support to mid-size banks
The GBP/USD pair has surrendered its morning gains and has slipped to near 1.2230 in the Asian session. The Cable witnessed the heat after failing to climb above the immediate resistance of 1.2250 as the US Dollar Index (DXY) has shown some recovery after a gradual correction.
The USD Index has attempted a recovery move from 103.00 as the promise of providing more financial support to mid-size banks by the United States administration has infused confidence among market participants. Bloomberg reported that US authorities are considering an expansion of the emergency lending facility that would offer banks more support, and will provide the First Republic Bank more time to shore up its balance sheet. Read more...
GBP/USD bulls poke 1.2250 with eyes on BoE’s Bailey, Fed’s preferred inflation gauge
GBP/USD begins the week on a positive footing, renewing its intraday high near 1.2250 while extending the previous two-week uptrend, as fears of US recession join positive headlines from the UK. However, the cautious mood ahead of this week’s key data/events seems to test the Cable pair buyers.
That said, the quote managed to cheer the Bank of England’s (BoE) 0.50% rate hike with mostly positive economics, as well as the downbeat US Treasury bond yields. However, Friday’s risk-negative headlines tested the GBP/USD buyers before the latest run-up, backed by the weekend news. 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.