Pound Sterling Price News and Forecast: GBP/USD declines as UK shop price inflation contracts

FXStreet Team FXStreet

Pound Sterling declines as UK shop price inflation contracts, Fed policy in focus

The Pound Sterling (GBP) trades lower against its major currency peers on Tuesday. The British currency weakens as firming Bank of England (BoE) dovish bets offset the impact of improved global market sentiment

Hopes of the Bank of England (BoE) easing monetary conditions have increased as United Kingdom (UK) retailers have cut their prices in October. The British Retail Consortium (BRC) showed earlier in the day that overall shop prices dropped by 0.3% monthly from September, the first decline seen since March. Accelerating BoE rate cut expectations could weigh on the Pound Sterling in the near term. Read more...

GBP/USD: Likelihood of a continued decline below 1.3295 is diminishing – UOB Group

Pound Sterling (GBP) could trade in a range of 1.3320/1.3370. In the longer run, downward momentum is starting to slow, and the likelihood of a continued decline below 1.3295 is diminishing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

24-HOUR VIEW: "Yesterday, we were of the view that GBP 'could trade in a range between 1.3295 and 1.3360.' GBP subsequently traded in a range of 1.3311/1.3353, closing slightly higher at 1.3335 (+0.12%). We continue to expect GBP to trade in a range, but the firmer underlying tone suggests it is likely to trade in a higher range of 1.3320/1.3370." Read more...

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FXStreet Team

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