Pound Sterling Price News and Forecast: GBP strengthens against US Dollar

British Pound strengthens against US Dollar as traders price out hawkish Fed bets

The British Pound (GBP) trades 0.35% higher to near 1.3533 against the US Dollar (USD) during the European trading session on Friday. The GBP/USD pair reflects strength as the US Dollar declines, with traders pricing out the possibility of an interest rate hike by the Federal Reserve (Fed) in the September policy meeting.

At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.23% lower to near 99.70. The CME FedWatch tool shows that the odds of the Fed holding policy rates steady in September have increased to almost 65%. This represents a major repricing from the 75% odds of two Fed hikes by the September meeting recorded a month earlier. Read more...

GBP/USD Price Forecast: Picks up above 1.3500 amid generalised US Dollar weakness

The British Pound (GBP) pares losses against a weaker US Dollar (USD) on Friday, as a run of soft US inflation figures and growing signs of labour market deterioration have cast doubt about the odds for an immediate Federal Reserve (Fed) rate hike. The GBP/USD has returned to the 1.3520 area from Thursday’s lows at 1.3474, inching towards a key resistance around 1.3550.

The focus on Friday is on the US Retail Sales, which are expected to show a 0.1% uptick in July, after a 0.2% gain in June, alongside the University of Michigan survey, which is foreseen to be little changed in August. Read more...

British Pound edges higher vs softer USD; lacks follow-through as geopolitics cap gains

The GBP/USD pair attracts some dip-buyers during the Asian session on Friday and, for now, seems to have snapped a two-day losing streak to the weekly low, which it touched the previous day. Spot prices, however, struggle to capitalize on the uptick beyond the 1.3500 psychological mark, warranting some caution for bullish traders.

Traders further scale back their expectations for Federal Reserve (Fed) rate hikes following the release of a soft US Producer Price Index (PPI) report on Thursday. Moreover, the lack of surprise from the US Consumer Price Index (CPI) on Wednesday pointed to signs of cooling inflation and gives the US central bank more room to hold interest rates steady. This is seen as undermining the US Dollar (USD) and offering some support to the GBP/USD pair. Read more...