Pound Sterling Price News and Forecast: GBP underperforms this week

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British Pound underperforms this week as experts doubt BoE tightening prospects

The British Pound (GBP) trades with caution against its major currency peers on Friday. Against the US Dollar (USD), it is marginally up at around 1.3220 during the European session, but is close to its almost three-month low of 1.3200. The British currency has underperformed its peers this week, trading 1.27% down against the US Dollar.

The reasoning behind GBP’s underperformance appears to be experts doubting hawkish Bank of England (BoE) interest rate expectations. Strategists at Brown Brothers Harriman (BBH) highlight a growing disconnect between market pricing and their own expectations for the BoE policy path. Read more...

GBP/USD Price Forecast: Softens to near 1.3200, staying bearish under 100-day SMA

The GBP/USD pair trades in negative territory around 1.3210 during the early European session on Friday. The British Pound (GBP) weakens against the US Dollar (USD) amid growing domestic fiscal concerns ahead of the upcoming UK budget.

The UK Office for National Statistics showed earlier this week that UK public sector borrowing hit £18.27 billion in August, exceeding the market forecast of £15.35 billion a year prior and £2.04 billion in July. The August reading was higher than expected. The cumulative deficit from April to August reaches £77.3 billion, surpassing the Office for Budget Responsibility's projection by £8.1 billion. Read more...

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FXStreet Team

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