GBP/USD Forecast: Pound Sterling could struggle to stage a decisive rebound
GBP/USD extended its slide after losing 0.9% on Thursday and touched its weakest level in nearly a month below 1.2710 early Friday. Although the pair managed to erase its daily gains, it could have a difficult time gathering momentum.
The Bank of England (BoE) announced on Thursday that it lowered the policy rate by 25 basis points to 5%. In the post-meeting press conference, BoE Governor Andrew Bailey refrained from confirming additional policy easing in the near future but failed to help Pound Sterling gather strength against its rivals.
GBP/USD outlook: Remains in red but bears face headwinds from daily cloud top
Cable remains in red in early Friday, following Thursday’s 0.9% drop (the biggest daily loss since Apr 10) as fresh risk aversion deflated sterling.
Bears extended to one-month low but find a footstep at 1.2706 (top of thick ascending daily cloud) and may pause here, as daily studies are becoming oversold and strong negative momentum started to fade. Read more...
GBP/USD depreciates toward 1.2700 due to increased risk-off mood, BoE rate cut
GBP/USD extends its losses following the Bank of England‘s (BoE) decision to deliver a broadly expected 25-basis point rate cut at its August meeting held on Thursday. The GBP/USD pair trades around 1.2720 during the Asian session on Friday.
BoE Governor Andrew Bailey explained the decision to reduce the policy rate to 5% and addressed media questions. Bailey noted that the increase in the minimum wage has not been detrimental from their viewpoint. According to Bailey, while firms often cite higher minimum wages as compressing pay scales, the overall inflation trajectory, including upside risks, is now closer to the 2% target compared to the median forecast. Read more...
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