Pound Sterling drops amid uncertainty ahead of Fed’s policy decision

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling could struggle to find direction ahead of Fed decision

GBP/USD registered its highest daily close in nearly three weeks on Monday above 1.2550 but failed to preserve its bullish momentum. The pair stays on the back foot early Tuesday, while managing to hold above 1.2500.

The selling pressure surrounding the US Dollar (USD) at the beginning of the week helped GBP/USD stretch higher. Early Tuesday, the cautious market stance allows the USD to stay resilient against its rivals and makes it difficult for the pair to regain its traction. After Wall Street's main indexes closed in positive territory on Monday, US stock index futures edge lower in the European session. Read more...

Pound Sterling drops amid uncertainty ahead of Fed’s policy decision

The Pound Sterling (GBP) edges down from a two-week high of 1.2570 but holds above the psychological support of 1.2500 against the US Dollar (USD) in Tuesday’s London session. The GBP/USD pair comes under pressure as investors await the US Federal Reserve’s (Fed) monetary policy announcement on Wednesday for fresh guidance.

A data-packed week in the United States will keep the US Dollar on tenterhooks. On the other side of the Atlantic, the United Kingdom's economic calendar is light. Therefore, market speculation for the Bank of England’s (BoE) interest rate policy on May 9 will guide the Pound Sterling. The BoE is expected to maintain the status quo, but guidance on interest rates is expected to be slightly on the dovish side. Read more...

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