Pound Sterling Price News and Forecast: GBP slumps against US Dollar as risky assets turn fragile

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British Pound slumps against US Dollar as risky assets turn fragile

The British Pound (GBP) is down 0.13% to near 1.3340 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair faces selling pressure as renewed geopolitical risks have diminished the appeal of riskier assets.

At press time, S&P 500 futures are down almost 1% to near 7,430, demonstrating a risk-off market mood. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher to near 101.15 after recovering early losses. Read more...

Pound awaits tighter policy from Bank of England

GBP/USD declined to 1.3352 on Wednesday amid a general deterioration in the external environment and a decline in risk appetite. The escalation of tensions in the Strait of Hormuz and Iran's attacks on facilities in Kuwait and Bahrain have prompted investors to move away from riskier assets.

Earlier, the pound had appeared more resilient, supported by oil prices rising above 72 USD per barrel and the associated inflationary risks. Market participants are currently pricing in approximately a 76% probability of a Bank of England rate hike before year-end, with the likelihood of tightening as early as November exceeding 50%. Read more...

GBP/USD Price Forecast: Sustenance above 20-day EMA backs further upside above 1.3400

The GBP/USD pair trades almost flat at around 1.3355 during the European trading session on Wednesday. The Cable consolidates as investors await the Federal Open Market Committee (FOMC) minutes of the June policy meeting, which will be published at 18:00 GMT.

At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally lower to near 101.05. Read more...

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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