Pound Sterling Price News and Forecast: GBP stays weak below 1.3250

FXStreet Team FXStreet

British Pound stays weak below 1.3250 as USD bulls retain control ahead of FOMC Minutes

The GBP/USD pair weakens further below mid-1.3200s during the first half of the European session on Wednesday, eroding a major part of the previous day's move higher amid a broadly firmer US Dollar (USD). Spot prices, however, remain confined in a familiar range held over the past two weeks or so as traders keenly await the release of FOMC Minutes before placing fresh directional bets.

The US macro data released last week pointed to moderating inflation and a slight cooling in the labor market, easing pressure on the Federal Reserve (Fed) to raise interest rates. Markets, however, are still pricing in around an 85% chance that the US central bank will raise borrowing costs by the end of this year. Hence, the FOMC Minutes would be scrutinized closely for more cues about the Fed's policy path. The outlook, in turn, will influence the USD and provide some meaningful impetus to the GBP/USD pair. Read more...

GBP/USD Price Forecast: Downside pressure could intensify below 1.3180

The British Pound (GBP) trades 0.18% lower at around 1.3248 against the US Dollar (USD) during the early European trading session on Wednesday. The GBP/USD pair is under pressure as the US Dollar outperforms ahead of the release of Federal Open Market Committee (FOMC) minutes of the September policy meeting at 18:00 GMT.

As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.22% higher at around 102.07. Read more...

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