Pound Sterling Price News and Forecast: GBP/USD continues its winning streak for the sixth successive session

FXStreet Team FXStreet

GBP/USD gains above 1.3250 as Fed rate cut bets weigh on US Dollar

GBP/USD continues its winning streak for the sixth successive session, trading around 1.3260 during the Asian hours on Thursday. The pair appreciates as the US Dollar (USD) struggles amid rising odds of Federal Reserve (Fed) rate cut bets in December.

US data showed unexpectedly low Initial Jobless Claims and stronger-than-expected Durable Goods Orders, yet rate-cut expectations remained intact. The CME FedWatch Tool suggests that markets are now pricing in a more than 84% chance that the Fed will cut its benchmark overnight borrowing rate by 25 basis points (bps) at its December meeting, up from the 30% probability that markets priced a week ago. Read more...

GBP/USD finds further gains ahead of Thanksgiving slowdown

GBP/USD accelerated into a fifth straight winning session on Wednesday, gaining another 0.55% on the day and pushing through the 1.3200 handle. Price action is now set to challenge key long-term moving averages, and the ball will remain in Cable bulls’ court through the back half of the trading week.

US markets are set to go functionally dark for the remainder of the week with American market participants taking Thursday and Friday off for Thanksgiving holiday celebrations. Things remain relatively quiet on the UK side of the market on the economic data docket; however, government budget tensions remain elevated as the British parliament grapples with finding ways to fund its operations without barreling into an out-of-control deficit. Read more...

GBP: Reeves avoids major fiscal risks – NOMURA

Chancellor Reeves sidestepped the biggest fiscal dangers, delivering limited near-term tightening while preserving headroom through backloaded tax hikes, NOMURA's FX analyst Dominic Bunning reports.

"Chancellor Reeves avoided the major tail risks that we were worried about. Limited near-term tightening but larger fiscal headroom (via backloaded tax hikes) seems to be amongst the 'least bad' outcomes." Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD flirts with daily tops near 1.1650 ahead of Fed

EUR/USD manages to regain the smile on Wednesday, trading with decent gains around 1.1650, or daily peaks. The pair's daily advance comes in response to further losses in the US Dollar as market participants get ready for the upcoming FOMC gathering, where the Fed is widely expected to lower its interest rates by a quarter point.

GBP/USD advances to 1.3350 amid USD selling

GBP/USD sets aside two daily declines in a row and manages to regain some balance beyond the 1.3300 hurdle on Wednesday. The better tone around Cable follows the renewed downside bias in the Greenback ahead of the much awaited interest rate decision by the Federal Reserve.

Gold aims north ahead of Fed’s announcement

Gold is a touch softer on Wednesday, even with the US Dollar easing and US Treasury yields reversing part of their recent robust multi-day recovery. The yellow metal remains cautious ahead of the widely expected 25 bps rate cut from the Fed and the release of an updated "dots plot".