Pound Sterling Price News and Forecast: GBP/USD consolidates the previous day’s strong move up

FXStreet Team FXStreet

GBP/USD flat lines around 1.2900 mark, below one-year peak touched on Thursday

The GBP/USD pair seesaws between tepid gains/minor losses around the 1.2900 mark during the Asian session on Friday and remains well within the striking distance of a one-year peak touched the previous day.

The US Dollar (USD) attracts some buyers in the wake of a goodish pickup in the US Treasury bond yields and moves away from a nearly three-month low touched the previous day, which, in turn, acts as a headwind for the GBP/USD pair. Meanwhile, the softer US consumer inflation figures released on Thursday boosted market bets for an imminent start of the Federal Reserve's (Fed) rate-cutting cycle in September. This might keep a lid on any meaningful upside for the US bond yields. Apart from this, the prevalent risk-on environment might hold back traders from placing aggressive bullish bets around the safe-haven buck. Read more...

GBP/USD extends upbeat rally as US CPI inflation cools

GBP/USD extended into a second day of a topside run, breaking through a firm supply zone and setting a fresh peak for 2024 near 1.2950. The pair set a new 50-week high as the Greenback tumbled across the board after US Consumer Price Index (CPI) inflation cooled to its lowest levels since 2021.

In June, US CPI inflation was lower than expected. The annualized headline CPI inflation dropped to 3.0% YoY from the previous 3.3%, lower than the forecasted 3.1%. Additionally, CPI inflation decreased by -0.1% MoM in June, down from the previous month’s 0.0% and below the expected 0.1%. Read more...

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