Pound Sterling Price News and Forecast: GBP traders reconsider BoE interest rate hike bets

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British Pound underperforms as traders reconsider BoE interest rate hike bets

The British Pound (GBP) is down against its major currency peers, trading marginally lower at around 1.3444 against the US Dollar (USD) during the European trading session on Friday. The British currency faces selling pressure as financial markets reconsider Bank of England (BoE) interest rate expectations for the September policy meeting after the monetary policy announcement on Thursday.

Analysts at Deutsche Bank stress that the BoE was not “edging towards a rate hike” at its latest meeting, despite the split vote on the MPC. They note that markets “dialed back expectations for BoE hikes in response,” with the implied probability of a September move dropping from 60% to 30%. In parallel, Deutsche Bank highlights that “31bps of hikes [were] priced by year-end (-11.4bps on the day),” underscoring how investors reassessed the near-term tightening path following the Bank’s communication. Read more...

GBP/USD Price Forecast: Weakens below 1.3450 while technical uptrend stays intact

The GBP/USD pair trades in negative territory around 1.3445 during the early European trading hours on Friday. Heightened Middle East tensions and rising global oil prices provide some support to a safe-haven currency such as the US Dollar (USD) against the British Pound (GBP). The Michigan Consumer Sentiment Index will be published later on Friday.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf on Thursday denounced the US attack on civilian homes on Qeshm Island, describing it as a continuation of American crimes in the southern Iranian cities of Minab and Lamerd. Earlier on Thursday, the US launched missile strikes across southern Iran, including Qeshm Island as well as parts of Bushehr, Fars and Khuzestan provinces. Read more...

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GBP/USD drops toward 1.3400 on USD rebound

GBP/USD turns south on Friday and declines toward 1.3400 after posting impressive gains earlier in the week. Heightened Middle East tensions and rising global oil prices provide some support for the safe-haven US Dollar (USD) heading into the weekend and weighs on the pair.

EUR/USD retreats below 1.1500, looks to post weekly gains

EUR/USD corrects lower on Friday and trades below 1.1500 following a two-day rally that saw the pair gain more than 1%. The risk-averse market atmosphere helps the US Dollar outperform its rivals heading into the weekend and forces the pair to retrace a portion of its weekly gains.

Gold declines but stays above $4,000 as Iran risks revive USD demand

Gold comes under renewed bearish pressure following a two-day recovery and trades deep in the red below $4,100, as the US Dollar regains its traction. Escalating US-Iran tensions keep inflation risks and Fed rate hike bets in play, supporting the USD, while the technical setup seems tilted in favor of bearish traders and backs the case for further losses.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.