Pound Sterling Price News and Forecast: GBP/USD struggles to gain any meaningful traction amid mixed backdrop
|GBP/USD consolidates above 1.3400 as softer USD offsets dovish BoE expectations
The GBP/USD pair kicks off the new week on a subdued note following Friday's good two-way price swings and holds steady above the 1.3400 round figure during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution before positioning for an extension of the recent goodish recovery from the 1.3250-1.3245 region, or the lowest level since early August, touched last Tuesday.
The US Dollar (USD) struggles to capitalize on its gains registered on Friday amid expectations of further interest rate cuts by the US Federal Reserve (Fed) this year. Apart from this, economic risks stemming from a prolonged US government shutdown, global trade frictions, and signs of weakness in the US economy keep the USD bulls on the defensive. This, in turn, is seen as a key factor offering some support to the GBP/USD pair. Read more...
GBP/USD Weekly Forecast: Pound Sterling awaits direction from key US inflation data
The Pound Sterling (GBP) found fresh buyers once again near the 1.3250 area when compared with the US Dollar (USD), pushing GBP/USD higher toward the 1.3500 threshold. GBP/USD buyers returned with a bang in the past week after an initial struggle, as the USD lost its upside momentum and incurred heavy losses against its major currency rivals.
Earlier in the week, the Pound Sterling faced headwinds from renewed US-China trade tensions-led risk aversion and weak UK employment data. The Office for National Statistics (ONS) showed on Tuesday, the UK Unemployment Rate rose to a four-year high of 4.8% in the three months to August, up from 4.7% in July. The Average Earnings growth fell to 4.7% in the three months to August. Read more...
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