Pound Sterling Price News and Forecast: GBP sticks to losses vs firmer USD

FXStreet Team FXStreet

British Pound sticks to losses vs firmer USD as Fed-BoE divergence favors bears

The GBP/USD pair struggles to capitalize on Friday's goodish rebound from the 1.1335 area, or its lowest level since July 30, and attracts fresh sellers at the start of a new week. Spot prices stick to modest intraday losses through the early European session and currently trade around the 1.3375 region, down nearly 0.15% for the day, and seem poised to decline further.

Against the backdrop of the Federal Reserve's (Fed) hawkish stance, escalating tensions in the Middle East assist the safe-haven US Dollar (USD) to regain positive traction following Friday's modest pullback from its highest level since late July. Adding to this, the Bank of England's (BoE) dovish on-hold decision continues to undermine the British Pound (GBP) and further exerts some pressure on the GBP/USD pair. Read more...

GBP/USD Price Forecast: Declines below 1.3400 as bearish momentum persists below 100-day SMA

The GBP/USD pair loses traction to near 1.3375 during the early European trading hours on Monday. The US Dollar (USD) strengthens against the British Pound (GBP) after the US Federal Reserve (Fed) delivered a hawkish hike last week.

The US central bank decided to raise its benchmark interest rate by 25 basis points (bps) to a 3.75%–4.00% range at its September policy meeting. Fed penciled in an additional hike later this year, steps aimed at containing inflation. Read more...

British Pound slips as hawkish Fed outlook boosts US Dollar

GBP/USD inches lower after registering modest gains in the previous trading day, hovering around 1.3390 during Asian hours on Monday. The pair loses ground as the US Dollar (USD) holds ground amid hawkish sentiment surrounding the Federal Reserve (Fed) policy outlook. Last week, the US Federal Reserve delivered a 25-basis-point rate hike, its first hike in three years, as officials sought to curb inflation and flagged more hikes in the coming months.

Fed Chair Kevin Warsh said that "the plain fact is that inflation is too high and has been for too long." "This summer's inflation readings do not tell me that underlying trends have meaningfully improved," he added. Markets are now pricing in nearly a 56.5% chance of another US rate hike when the Fed meets next in October, compared with nearly 42.5% a week ago, according to the CME FedWatch tool. Read more...

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