Pound Sterling Price News and Forecast: GBP/USD bears opt to lighten their bets

FXStreet Team FXStreet

GBP/USD Price Forecast: Bears opt to lighten their bets ahead of BoE rate decision

The GBP/USD pair trades with a positive bias for the second straight day on Thursday and looks to build on the previous day's bounce from the vicinity of the 1.3000 psychological mark, or a nearly seven-month low amid a softer US Dollar (USD). Spot prices, however, lack follow-through buying as traders refrain from placing aggressive directional bets ahead of the crucial Bank of England (BoE) policy update.

The UK central bank is expected to hold its key interest rate unchanged at 4.0%, though analysts are not ruling out the possibility of a surprise cut as softer inflation and fiscal headwinds back the case for more easing. Furthermore, emerging signs of a slack in the UK labour market lifted bets for a 25-basis-point (bps) rate cut sooner rather than later. This, along with concerns about the UK's fiscal situation, is holding back traders from placing aggressive bullish bets around the British Pound (GBP) and acting as a headwind for the GBP/USD pair. Read more...

GBP/USD hovers near lows as Bank of England decision looms

The GBP/USD pair is attempting to find support around 1.3062 on Thursday, with investors cautiously positioning themselves ahead of today's pivotal Bank of England (BoE) monetary policy meeting. The British currency remains under pressure, trading near a seven-month low against the US dollar and at its weakest level in over two years against the euro.

Market pricing currently implies roughly a one-in-three chance of a 25-basis-point rate cut from the BoE. This uncertainty creates significant asymmetric risk, meaning the pound is poised for a sharp move in either direction once the decision and accompanying statement are released. Read more...

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FXStreet

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.