Pound Sterling extends its gains due to revived expectations for the Fed’s interest rate cuts in 2024

FXStreet Team FXStreet

GBP/USD rises to near 1.2550 due to dovish sentiment surrounding Fed

GBP/USD continues its winning streak for the fourth consecutive day, trading around 1.2550 during the Asian trading hours on Monday. The appreciation of the GBP/USD pair could be attributed to the recalibrated expectations for the Federal Reserve’s (Fed) interest rate cuts in 2024 following the release of lower-than-expected jobs data from the United States (US).

On Friday, US Nonfarm Payrolls showed that the United States (US) economy added 175,000 jobs in April, lower than the estimated 243,000, signaling a significant slowdown from March's addition of 315,000 jobs. Additionally, Average Hourly Earnings (YoY) increased by 3.9% in April, slightly lower than expected at 4.0% and 4.1% prior. In the meantime, the monthly growth was at 0.2%, slightly falling short of the expected 0.3%. Read more...

GBP/USD Weekly Forecast: Pound Sterling rises ahead of UK-centered data week

The British Pound (GBP) extended its march north against the US Dollar (USD) throughout the week, motivating GBP/USD to break above the 1.2600 figure for the first time since mid-April.

Meanwhile, the Pound Sterling experienced continued buying pressure against the US Dollar following an auspicious start to the week. This renewed upside bias coincided with diminished demand for the US Dollar, which was exacerbated in response to the dovish tilt (or at least not as hawkish as expected) by the Federal Reserve (Fed) at its meeting on Wednesday as well as by Chairman Jerome Powell at his subsequent press conference. Read more...

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FXStreet

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.