Pound Sterling Price News and Forecast: GBP/USD pound eyes 1.2400 as next bullish target
|GBP/USD outlook: Cable stands at the front foot ahead of UK inflation report
Cable extends recovery after Friday’s drop, holding positive sentiment after the BoE kept its mode of gradual rate increases on last week’s policy meeting, but showed readiness for more aggressive steps if needed to curb surging inflation.
Traders look for more clues from Wednesday’s UK CPI report, with forecasts for inflation to rise to 9.1% in May from 9.0% previous month and expectations that inflation can top 11%. Read more...
GBP/USD Forecast: Pound eyes 1.2400 as next bullish target
GBP/USD has managed to build on Monday's modest gains and climbed above 1.2300 in the early European morning on Tuesday. The broad-based dollar weakness amid improving risk mood helps the pair preserve its bullish momentum.
US President Joe Biden said on Monday that they could decide whether to pause the federal gasoline tax by the end of the week. Additionally, St. Louis Federal Reserve Bank President James Bullard reiterated that the effects of the Fed's forward guidance were already taking hold on the economy and inflation. Read more...
GBP/USD climbs further beyond 1.2300 mark, lacks follow-through buying
The GBP/USD pair added to the previous day's modest gains and scaled higher for the second successive day on Tuesday. The steady intraday ascent extended through the first half of the European session and lifted spot prices to a two-day high, around the 1.2325 region in the last hour.
The risk-on impulse - as depicted by the strong rally across the global equity markets - undermined the safe-haven US dollar. Apart from this, signs that there will not be any consensus for a 100 bps rate hike in the foreseeable future exerted heavy downward pressure on the USD, which, in turn, extended support to the GBP/USD pair. Read more...
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