Pound Sterling Price News and Forecast: GBP/USD drops as BoE's Ramsden warns of labor market risks

FXStreet Team FXStreet

Pound Sterling drops as BoE's Ramsden warns of labor market risks

The Pound Sterling (GBP) faces slight selling pressure on Tuesday. The British currency trades marginally lower as Bank of England (BoE) Deputy Governor Dave Ramsden has argued in favor of reducing interest rates amid growing United Kingdom (UK) labor market concerns. Ramsden is also confident that inflationary pressures will return to the central bank as interest rates are still restrictive.

“We have seen the labour market continuing to loosen with wage growth normalising,” Ramsden said in a panel discussion organised by the European Central Bank (ECB) in Frankfurt on Monday, and added that "I [Ramsden] see that as supporting a continuation of the core disinflation process, which anchors his view on the inflation outlook," Reuters reported. Read more...

GBP/USD Forecast: Pound Sterling buyers remain hesitant

After closing with small gains on Monday, GBP/USD holds its ground and trades slightly below 1.3450 in the European session on Tuesday. Markets cling to a cautious stance as investors grow increasingly concerned over a possible government shutdown in the US.

After meeting with Republicans on Monday, Senate Democratic Leader Chuck Schumer said that the two sides still have "very large differences." Additionally, Vice President JD Vance noted that he thought they were headed to a government shutdown. Read more...

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