Pound Sterling Price News and Forecast: GBP hits session highs at 1.3420 amid broadbased US Dollar weakness

FXStreet Team FXStreet

British Pound hits session highs at 1.3420 amid broadbased US Dollar weakness

The British Pound (GBP) is taking back most of the previous two days’ losses on Monday, favoured by the US Dollar’s (USD) weakness amid positive market sentiment. The GBP/USD pair is trading at the 1.3420 area at the time of writing after bouncing from lows below 1.3350 on Friday and with last week’s highs, near 1.3500, on the bulls’ focus.

Investors are selling the US Dollar on Monday, in favour of riskier-perceived currencies, like the British Pound, amid an improved risk mood. News of progress in the negotiations to reach a peace deal between the US and Iran has offset last week’s fears about an AI bubble, at least for now, and is keeping Oil prices steady at levels near two-month lows. Read more...

GBP/USD Price Forecast: Holds firm above 1.3350, but remains capped below key moving average

The GBP/USD pair gathers strength to near 1.3385 during the early European trading hours on Monday. A hawkish hike from the Bank of England (BoE) provides some support to the British Pound (GBP) against the US Dollar (USD).

The UK central bank decided to lift its benchmark interest rate by 25 basis points (bps) to 4.00%, marking its first rate increase in over three years. BoE Governor Andrew Bailey emphasized the war in the Middle East, which is pushing up energy prices, as the main factor in deciding future rates. Read more...

British Pound nudges higher above 1.3350 despite strong US jobs data

The GBP/USD pair gains ground to near 1.3370, snapping the two-day losing streak during the early Asian session on Monday. The British Pound (GBP) strengthens against the US Dollar (USD) on a hawkish-than-expected policy stance from the Bank of England (BoE).

Last week, the BoE raised its benchmark interest rate by 25 basis points (bps) to 4.00%, marking its first rate increase in over three years. BoE Governor Andrew Bailey emphasized the war in the Middle East, which is pushing up energy prices, as the main factor in deciding future rates. Markets price three more hikes by the end of next year, more than most economists expect. Read more...

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FXStreet Team

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