Pound Sterling Price News and Forecast: GBP/USD edges lower amid the emergence of some USD dip-buying

GBP/USD Price Forecast: Faces rejection near 100-day SMA, holds above mid-1.2900s

The GBP/USD pair struggles to build on the previous day's positive move and faces rejection near the 100-day Simple Moving Average (SMA) during the Asian session on Friday. Spot prices currently trade around the 1.2965-1.2960 region, down 0.15% for the day amid a modest US Dollar (USD) uptick, though the downside seems limited on the back of the Bank of England's (BoE) hawkish stance.

In fact, the BoE warned that the expansive Autumn Budget introduced by Chancellor Rachel Reeves is expected to fuel inflation, suggesting that it adopt a cautious stance toward rate cuts in 2025. In contrast, the Federal Reserve (Fed) Chair Jerome Powell failed to offer any cues that the central bank was likely to pause rate cuts in the near term. This leads to a further decline in the US Treasury bond yields and might hold back the USD bulls from placing aggressive bets, which, in turn, should offer support to the GBP/USD pair. Read more...

GBP/USD holds below 1.3000 after BoE/Fed rate decision

The GBP/USD pair edges lower to around 1.2975 during the Asian trading hours on Friday. The Pound Sterling weakens after the Bank of England (BoE) reduced its interest rates by 25 basis points (bps) on Thursday. Traders will take more cues from the advanced US Michigan Consumer Sentiment data and the Federal Reserve’s (Fed) Michelle Bowman’s speech later on Friday.

After a jumbo half percentage point reduction in September, the Federal Open Market Committee (FOMC) lowered its benchmark overnight borrowing rate by a quarter percentage point to a target range of 4.50%-4.75% at its November meeting on Thursday. Fed officials have justified the easing mode for policy as they view supporting employment as becoming at least as much of a priority as arresting inflation. Read more...