Pound Sterling Price News and Forecast: GBP/USD consolidates as outlook remains mixed

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GBP/USD consolidates as outlook remains mixed

GBP/USD rose to 1.3237 on Friday. Following a rapid decline, the pound has entered a consolidation phase, although the main external drivers remain a strong US dollar and a renewed rise in bond yields amid inflation risks.

The focus remains on Bank of England policy. Markets put the probability of a rate hike at the November meeting at over 80% and are effectively pricing in two 25-basis-point hikes by February. High energy prices and concerns that inflationary pressures in the UK could prove more persistent are reinforcing these expectations. MPC member Megan Greene also warned that the Bank of England should not rely solely on high bond yields as a means of curbing inflation. Read more...

GBP/USD Price Forecast: Risk-on sentiment lends support

The British Pound (GBP) is up 0.17% at around 1.3250 against the US Dollar (USD) during the European trading session on Friday. The GBP/USD pair gains as a pullback in United States (US) Treasury Yields after a juggernaut rally has lifted market sentiment.

At press time, S&P 500 futures are up 0.34% to near 7,8000, reflecting a risk-on market mood. 10-year US Treasury Yields are down 0.23% to near 5.22%. Yields on US-backed securities are down over 2.5% from its fresh-two-decade high of 5.36% posted this week. Read more...

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FXStreet Team

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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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