Pound Sterling Price News and Forecast: GBP/USD dip-buying favored on pullbacks below 1.3500

FXStreet Team FXStreet

GBP/USD Price Forecast: Dip-buying favored on pullbacks below 1.3500

The GBP/USD pair attracts some sellers on Thursday and erodes a part of the previous day's strong gains to an over two-month high, around the 1.3555-1.3560 region. Spot prices stick to modest intraday losses around the 1.3525 zone through the first half of the European session, though the broader setup favors bullish traders and warrants caution before positioning for any further fall.

As investors digest this week's soft US Consumer Price Index (CPI) and Producer Price Index (PPI) reports, elevated crude oil prices revive energy-driven inflation fears and US Federal Reserve (Fed) rate hike expectations. This, along with escalating US-Iran tensions, offers some support to the safe-haven US Dollar (USD) and turns out to be a key factor exerting pressure on the GBP/USD pair. Read more...

British Pound remains muted as UK monthly GDP rises 0.1%, as expected

The British Pound (GBP) remains almost muted against its major currency peers after the release of the monthly United Kingdom (UK) Gross Domestic Product (GDP) data for May. The Office for National Statistics (ONS) has reported that the economy expanded 0.1%, as expected, after contracting at a similar pace in April.

Signs of improving UK economic growth would be favorable for the British Pound in the near term. Meanwhile, the UK Industrial Production data for May has come in weaker than projected. The data contracted at a pace of 0.5% Month-on-Month (MoM), stronger than 0.1% estimates. In April, the data was expanded by 0.2%, revised higher from 0%. Read more...

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FXStreet Team

FXStreet

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