Pound Sterling Price News and Forecast: GBP/USD slides below mid-1.3100s
|GBP/USD Forecast: Pound recovers modestly, 1.3100 still under threat
GBP/USD has staged a recovery after dipping below 1.3100 on Thursday but has lost its momentum early Friday. The negative shift witnessed in risk mood could continue to weigh on the pair ahead of the weekend and drag it toward 1.3100 support.
On Thursday, the Bank of England (BOE) announced that it hiked its policy rate by 25 basis points to 0.75% as expected. Deputy Governor Jon Cunliffe, however, voted to keep rates on hold and didn't allow the British pound to capitalize on the rate increase. Additionally, the policy statement showed that the Russia-Ukraine crisis had "increased the uncertainty around the economic outlook significantly" and the bank's cautious tone further weighed on the GBP. Read more...
GBP/USD slides below mid-1.3100s, fresh daily low amid a pickup in USD demand
The GBP/USD pair surrendered its modest intraday gains and dropped to a fresh daily low, below mid-1.3100s during the early part of the European session.
The pair gained some positive traction during the early part of the trading on Friday, though the uptick ran out of steam near the 1.3180-1.3185 area amid a goodish pickup in the US dollar demand. The lack of progress in the Russia-Ukraine peace negotiations kept a lid on the recent optimistic move in the markets. This was evident from a generally softer risk tone, which drove some haven flows towards the greenback and acted as a headwind for the GBP/USD pair. Read more...
GBP/USD: Levels near 1.32/33 the best case for some time – ING
The Bank of England (BoE) hiked its policy rate by 25 basis points but he policy statement revealed a cautious stance on future rate hikes. Economists at ING expect the GBP/USD to stall ahead of the 1.32/33 area.
“Unlike the Fed, the BoE delivered a cautious 25bp rate hike, with one dissenter voting for unchanged rates. The market removed roughly one 25bp hike from its expectations this year (Bank Rate now priced at 1.90% in December).” Read more...
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