GBP/USD Forecast: Pound remains fragile despite latest recovery attempt
GBP/USD has gathered recovery momentum and climbed above 1.2100 during the European trading hours on Tuesday. The pair closes in on key resistance levels and it could find it difficult to attract buyers ahead of the US Consumer Price Index data on Wednesday.
In an interview with Reuters, Bank of England (BOE) Deputy Governor Dave Ramsden said that the BOE could continue to sell gilts even if a recession forces it to start lowering the policy rate. "I think by embarking on QT, that does at the margin impart some further monetary tightening, but it's in the background compared to Bank Rate," Ramsden told Reuters. Read more...
GBP/USD climbs back above 1.2100 mark, refreshes daily high amid weaker USD
The GBP/USD pair attracts fresh buying on Tuesday and moves back above the 1.2100 mark during the first half of the European session. The pair is currently trading around the 1.2120 region, just a few pips below the overnight swing high.
The US dollar edges lower for the second successive day and turns out to be a key factor lending some support to the GBP/USD pair. The initial market reaction to Friday's blockbuster US monthly jobs data fades rather quickly amid a generally positive risk tone, which is seen weighing on the safe-haven greenback. Read more...
GBP/USD could find it difficult to attract buyers amid cautious market mood
GBP/USD has climbed above 1.2100. Nonetheless, the pound remains fragile despite the latest recovery attempt, FXStreet’s Eren Sengezer reports.
“Second-quarter Nonfarm Productivity and Unit Labor Costs from the US will be looked upon for fresh impetus. The IBD/TIPP Economic Optimism Index and the NFIB Business Optimism Index will also be featured in the US economic docket. In case safe-haven flows return on disappointing prints, safe-haven flows could provide a boost to the dollar and weigh on GBP/USD.” Read more...
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