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 weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.