Pound Sterling Price News and Forecast: GBP/USD bounces off its lowest level since mid-May

FXStreet Team FXStreet

GBP/USD Price Analysis: Edges higher amid modest USD downtick, not out of the woods yet

The GBP/USD pair attracts some buyers near the 1.2615-1.2610 area, or its lowest level since mid-May touched during the Asian session on Thursday and reverses a part of the previous day's steep decline. Spot prices currently trade around the 1.2630 area, up less than 0.10% for the day, as traders now look to the key US macro data before positioning for the next leg of directional bets.

In the meantime, the US Dollar (USD) is seen retreating from a nearly two-month high touched on Wednesday and acting as a tailwind for the GBP/USD pair. That said, elevated US Treasury bond yields, bolstered by expectations that the Federal Reserve (Fed) is in no rush to start its rate-cutting cycle, should help limit losses for the buck. Apart from this, rising bets for a rate cut by the Bank of England (BoE) in August could undermine the British Pound (GBP) and further contribute to capping the GBP/USD pair ahead of the UK general election on July 4. Read more...

GBP/USD slumps to familiar lows in midweek action as Greenback bids reignite

GBP/USD backslid into familiar near-term lows on Wednesday as tepid market flows bolstered the US Dollar. The Pound Sterling remained pinned on the low side as the pair struggled to stay above 1.2600.

Wednesday brought little of note in scheduled releases, with the UK absent from the economic calendar and US New Home Sales Change in May clocking in a -11.3% decline MoM compared to the previous month’s 2.0%, revised sharply from the initial print of -4.7%. Read more...

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FXStreet

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.