GBP/USD Forecast: Potential for a rebound above 1.2600 on weak US GDP
After having dropped below 1.2500 for the first time since July 2020 in the early European morning, GBP/USD has managed to erase its daily losses to turn positive on the day above 1.2550. The pair remains oversold in the near term and an extended correction could be witnessed in case the greenback loses its strength on an uninspiring growth report.
Following the Bank of Japan's (BOJ) decision to leave its policy settings unchanged in the Asian session, the BOJ-Fed policy divergence allowed the dollar to outperform its rivals. In the European session, the improving market mood, as reflected by a 0.8% jump seen in the UK's FTSE 100 Index, is causing the dollar to lose interest while helping the British pound find demand. Read more...
GBP/USD Outlook: Any meaningful recovery seems elusive; US PCE inflation data in focus
The GBP/USD pair witnessed heavy selling for the sixth successive day and dived to its lowest level since July 2020 on Thursday amid the relentless US dollar buying. The prospects for rapid interest rate hikes in the US, along with the deteriorating global economic outlook, pushed the USD to a five-year high. Investors seem convinced that the Fed would adopt a more aggressive policy response to combat stubbornly high inflation and have been pricing in a 50 bps rate hike at the upcoming meeting on May 3-4. The bets were reaffirmed by hawkish remarks from influential FOMC members last week, including Fed Chair Jerome Powell. The US central bank is also expected to continue tightening its monetary policy when it meets again in June and July, and ultimately lift rates to around 3.0% by the end of the year. Read more...
GBP/USD rallies into upper 1.2500s amid pre-month-end buck profit-taking
Pre-month-end profit-taking in the US dollar, which has up until this point been on a rampage higher in recent weeks against most of its major counterparts, is being attributed as the main factor giving GBP/USD a lift on Friday. The pair was last trading in the 1.2575 region, up about 1.0% on the day and over 1.3% higher versus Thursday’s intra-day lows at 1.2410.
But the pair’s latest rebound comes as little consolation for the deflated GBP/USD bulls, with cable still set to end the week with losses of about 2.0% and the month with losses of about 4.25%. That would mark GBP/USD’s joint-worst one-month performance since July 2019. Read more...
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GBP/USD holds ground above 1.2600 ahead of UK CPI data
GBP/USD remains firm after losses in the previous session, trading around 1.2610 during the Asian session on Wednesday. Traders await the release of January’s Consumer Price Index data from the United Kingdom.

EUR/USD holds positive ground near 1.0450, FOMC Minutes in focus
The EUR/USD pair posts modest gains to around 1.0450 during the Asian trading hours on Wednesday, bolstered by the weakening of the US Dollar (USD). However, tariff concerns and tense Russia-Ukraine negotiations might boost the Greenback and cap the upside for the major pair.

Gold price trades with mild negative bias; holds above $2,900 ahead of FOMC minutes
Gold price drifts lower as bulls opt to lighten their bets ahead of the FOMC minutes release. Concerns about Trump’s tariff plans and trade war fears lend support to the commodity. Fed rate cut bets undermine the USD and further act as a tailwind for the XAU/USD pair.

UK CPI set to rise in January, raising uncertainty over BoE rate cuts
United Kingdom’s Office for National Statistics will publish the January CPI data on Wednesday. The annual UK headline and core CPI inflation are expected to increase in January. The Pound Sterling braces for volatility on the UK CPI report data release amid a prudent BoE.

Rates down under
Today all Australian eyes were on the Reserve Bank of Australia, and rates were cut as expected. RBA Michele Bullock said higher interest rates had been working as expected, slowing economic activity and curbing inflation, but warned that Tuesday’s first rate cut since 2020 was not the start of a series of reductions.

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