Pound Sterling Price News and Forecast: GBP gains ground to near 1.3430 early European session

FXStreet Team FXStreet

GBP/USD Price Forecast: Edges higher above 1.3400, bullish outlook remains intact

The GBP/USD pair trades in positive territory around 1.3430 during the early European trading hours on Friday. The UK government leadership transition and growing expectations of further Bank of England (BoE) interest rate hikes underpin the British Pound (GBP) against the US Dollar (USD).

Andy Burnham’s path to becoming the next UK prime minister looks certain after a vast majority of Labour MPs formally nominated him to be the next party leader. Bloomberg reported on Thursday that 322 of 403 Labour members of Parliament voted for Burnham at the end of the first day of the party’s leadership contest to replace Keir Starmer. Burnham is expected to formally become Prime Minister on July 20. Read more...

British Pound gains traction above 1.3400 as markets bet on BoE rate hikes

The GBP/USD pair gathers strength to around 1.3430 during the Asian trading hours on Friday. The British Pound (GBP) edges higher against the US Dollar (USD) on the UK government leadership transition and growing expectations of further Bank of England (BoE) interest rate hikes.

British Pound Sterling stages a jailbreak while Westminster arranges a coronation

Cable adds roughly a tenth of a percent on Thursday, changing hands a whisker above 1.3400 and poking through the 200-day Exponential Moving Average (EMA) for the first time since mid-June. The setting makes the move notable: the United States traded overnight strikes with Iran for a second consecutive day, Crude Oil carries a war premium, and Federal Reserve (Fed) speakers spent the session sounding hawkish. None of it bought the Dollar anything against the Pound.

Thursday's American docket gave Dollar bulls usable material, starting with Initial Jobless Claims printing 215K at 12:30 GMT against a 218K consensus and a 217K prior. A voting Federal Open Market Committee (FOMC) member delivered remarks rated firmly hawkish at 13:00 GMT, another policymaker speaks at 17:30 GMT, and Existing Home Sales falling 2.4% MoM in June stands as the lone soft spot on the tape. Read more...

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