Pound Sterling attracts some dip-buyers on Monday amid a softer USD
GBP/USD Weekly Forecast: Pound Sterling hit by increasing risk-off sentiment, strong Dollar
The Pound Sterling (GBP) accelerated its south run against the US Dollar (USD), knocking the GBP/USD pair to levels unseen since late November 2023.
Mounting fears over a fully blown-out war in the Middle East combined with a hawkish shift in the US Federal Reserve (Fed) interest-rate outlook doubled up the demand for the US Dollar at the expense of the Pound Sterling. The underlying cautious environment throughout the week weighed on the risk currencies such as the British Pound. Read more...
GBP/USD rebounds from YTD trough, steadily climbs back closer to 1.2400 mark
The GBP/USD pair stages a modest recovery from the 1.2365-1.2360 area, or its lowest level since November 14 touched during the Asian session on Monday and for now, seems to have snapped a two-day losing streak. The uptick is supported by a modest US Dollar (USD) downtick and lift spot prices back closer to the 1.2400 mark in the last hour, though any meaningful upside still seems elusive.
Iran signaled that it has no plans to retaliate against the Israeli limited-scale missiles strike on Friday, easing fears about a further escalation of tensions in the Middle East. This, in turn, boosts investors' confidence, which, in turn, is seen undermining the safe-haven Greenback and acting as a tailwind for the GBP/USD pair. Meanwhile, expectations that the Federal Reserve (Fed) will keep rates higher for longer in the wake of still-sticky inflation in the US help limit the USD downside and might cap the major. Read more...
Author
FXStreet Team
FXStreet
