Pound Sterling Price News and Forecast: GBP/USD wake me up when September ends
|GBP/USD: Wake me up when September ends
GBP/USD crashed to a seven-week low of 1.3322 on Thursday as a string of data reflected an expanding US economy, reducing the odds of an aggressive Fed rate cut.
The past two weeks have been heavy enough to push the pair into monthly losses, erasing almost 3.0% from the 1.3725 high. Yet, the price has not closed below September’s floor of 1.3332, creating speculation that the plunge could soon take a breather. The stochastic oscillator supports this narrative, fluctuating below its oversold level of 20, while the close beneath the lower Bollinger band suggests a pivot may be nearby. Read more...
GBP/USD Forecast: Bears look to retain control
GBP/USD came under heavy bearish pressure and dropped to its lowest level since early August below 1.3330. Although the pair clings to modest gains near 1.3350 in the European morning on Friday, it could have a difficult time gathering recovery momentum in the short term.
The upbeat macroeconomic data releases from the US boosted the US Dollar (USD) on Thursday and caused GBP/USD to decline sharply in the American session. he US Bureau of Economic Analysis' (BEA) final estimate showed that the Gross Domestic (GDP) expanded at an annual rate of 3.8% in the second quarter. Read more...
GBP/USD under pressure as markets question Bank of England's stance
The GBP/USD pair remains under pressure, trading around 1.3460, as it contends with a mix of conflicting factors.
In the UK, Bank of England Governor Andrew Bailey stated that inflation is expected to decline next year but confirmed that the central bank's policy will remain restrictive. He pointed to a weakening labour market and cautious consumers, whose savings are twice as high as pre-pandemic levels. Bailey acknowledged that interest rates would likely continue to fall but emphasised that the pace of easing would be strictly dependent on incoming inflation data. Read more...
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