Pound Sterling Price News and Forecast: GBP/USD attracts sellers for the fifth consecutive day

FXStreet Team FXStreet

Pound Sterling seems vulnerable near one-month low vs. USD as traders await US data

The GBP/USD pair prolongs its weekly downtrend for the fifth consecutive day on Friday and slides back closer to a nearly one-month low, touched the previous day. Spot prices trade below mid-1.3400s during the Asian session on Friday and seem vulnerable to slide further as traders now look to important US macro data for a fresh impetus.

The Advance US Q4 GDP report, along with the US Personal Consumption Expenditure (PCE) Price Index, is due for release later today and will be looked upon for more cues about the US Federal Reserve's (Fed) rate-cut path. This, in turn, will play a key role in influencing the near-term US Dollar (USD) price dynamics. In the meantime, reduced bets for more aggressive policy easing by the US central bank assist the USD to stand firm near its highest level since January 23 and turn out to be a key factor exerting pressure on the GBP/USD pair. Read more...

GBP/USD tests key averages as UK data softens and FOMC strikes hawkish tone

The Bank of England (BoE) held rates at 3.75% at its February meeting in a tight 5-4 vote, with four members pushing for a 25 basis point cut. This week's data has strengthened the case for easing: Tuesday's labor report showed unemployment climbing to 5.2% with payrolls falling by 30K, and Wednesday's CPI confirmed headline inflation dropped to 3% from higher levels while the Retail Price Index fell to 3.8%. The softening data keeps a March rate cut firmly in play.

On the US Dollar side, the FOMC minutes released Wednesday struck a hawkish tone, with members describing economic growth as "solid" and warning that progress toward the 2% inflation target may be "slower and more uneven" than expected. Some participants flagged that rate hikes could not be ruled out if inflation reaccelerates, a notable shift that pushed the US Dollar higher. Friday's UK retail sales and preliminary PMI data, alongside US GDP and core PCE, will set the tone heading into the March BoE decision. Read more...

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FXStreet Team

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