Pound Sterling Price News and Forecast: GBP edges lower towards 1.3400 as BoE Bailey buys time

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British Pound edges lower towards 1.3400 as BoE Bailey buys time

The British Pound (GBP) drifts lower against the US Dollar (USD) on Friday, reaching session lows at 1.3408 so far, on track for a moderate weekly decline. Bank of England Governor Andrew Bailey has practically discarded any interest rate hike in the near future, while US data adds pressure on the Federal Reserve (Fed) to tighten its monetary policy.

Bailey affirmed at an economic meeting in Reykjavik that ”there is a case for tolerating temporarily above target inflation," and added that economic activity and the labour market are weighing on second-round effects. The BoE chied also stated that, having taken expected cuts off the table, the bank has already tightened policy considerably in response to the shock relative to what had been expected by markets. Read more...

GBP/USD Price Forecast: Broader trend remains sideways amid Triangle formation

The GBP/USD pair trades subduedly at around 1.3440 during the early European trading session on Friday. The Cable is marginally under pressure as the US Dollar (USD) trades higher, with investors awaiting United States (US) President Donald Trump’s approval to the 60-day Memorandum of Understanding (MoU) with Iran, as reported by Axios.

As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades slightly higher to near 99.06. However, the DXY corrected sharply from its over seven-week high of 99.10 on Thursday, following media reports that the US and Iran have reached an agreement. Read more...

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