Pound Sterling Price News and Forecast: GBP gains ahead of Fed-BoE monetary policy decisions

FXStreet Team FXStreet

Pound Sterling gains ahead of Fed-BoE monetary policy decisions

The Pound Sterling (GBP) performs strongly against its major peers at the start of the week, supported by the improved appeal for risk-perceived currencies and a weakening US Dollar, which is pressured by growing prospects that the Federal Reserve (Fed) will opt for a large interest rate cut on Wednesday.

Firm Fed rate cut prospects have weighed on the US Dollar (USD), with the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posting a fresh weekly low near 100.80. Read more...

GBP/USD Forecast: Pound Sterling bulls retain control on Monday

GBP/USD gathers bullish momentum in the European session on Monday and trades at its highest level in over a week above 1.3150. The pair's near-term technical outlook suggests that the bullish bias remains unchanged. Investors, however, could move to the sidelines ahead of the Federal Reserve's (Fed) and the Bank of England's (BoE) monetary policy announcements later in the week.

The US Dollar (USD) stays under selling pressure after weakening against its major rivals in the second half of the previous week. The Wall Street Journal reporter Nick Timiraos, who is widely seen as a “Fed insider,” wrote last week that the size of the Fed’s rate cut at the September policy meeting will be a close call. Read more...

GBP/USD Weekly Forecast: Pound Sterling looks for further upside in UK CPI, Fed-BoE decision week

The Pound Sterling (GBP) stalled its correction from over two-year highs against the US Dollar (USD) and staged an impressive comeback, with the GBP/USD pair having tested the critical 1.3000 threshold.

GBP/USD witnessed good two-way price action, correcting sharply to a three-week low of 1.3002 in the first half of the week only to recover the weekly losses in the latter part. The sentiment around the pair was mainly driven by the dynamics of the US Dollar. The Greenback continued to remain at the mercy of the market’s expectations on the size of the interest rate cut by the US Federal Reserve (Fed) in the upcoming week. Read more...

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EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.