Pound Sterling Price News and Forecast: GBP/USD ticks lower as a slump in the JPY assists the USD
|GBP/USD remains on the defensive below 1.3500 on firmer USD; downside seems limited
The GBP/USD pair kicks off the new week on a softer note and slips back below the 1.3500 psychological mark during the Asian session. The downtick, however, lacks bearish conviction, warranting caution for bearish traders and positioning for an extension of Friday's late pullback from the 1.3555 area, or a nearly three-week high.
The US Dollar (USD) gains some positive traction and moves away from its lowest level since July 28, touched in reaction to the disappointing US monthly employment details on Friday, which, in turn, is seen weighing on the GBP/USD pair. The USD move up could be attributed to a slump in the Japanese Yen (JPY), led by domestic political turmoil, and runs the risk of fading rather quickly amid rising Federal Reserve (Fed) rate cut bets. Read more...
GBP/USD Weekly Forecast: Focus remains on stagflation and the BoE
In quite turbulent past few days for the Pound Sterling, GBP/USD eventually managed to close the week with decent gains above the key 1.3500 figure, reversing at the same time two weekly retracements in a row.
While the cautious stance from the Bank of England (BoE) continues to lend some cushion to the currency, speculation that a potential stagflationary scenario could be brewing raised extra concerns among market participants and seems to keep occasional bullish attempts contained. Read more...
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