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

FXStreet Team FXStreet

GBP/USD Price Analysis: Bulls turn cautious amid overbought RSI, downside potential seems limited

The GBP/USD pair trades with a mild negative bias during the Asian session on Thursday, albeit lacks follow-through selling and remains well within the striking distance of the one-year peak touched the previous day. Spot prices currently hover around the 1.3000 psychological mark and seem poised to prolong the recent uptrend witnessed over the past three weeks or so.

A modest pickup in the US Treasury bond yields assists the US Dollar (USD) in recovering a part of the previous day's heavy losses to a nearly four-month low, which, in turn, is seen acting as a headwind for the GBP/USD pair. That said, growing acceptance that the Federal Reserve (Fed) will start the rate-cutting cycle in September, along with the underlying strong bullish tone across the global equity markets, might cap the upside for the safe-haven Greenback. Read more...

GBP/USD reclaims 1.30 as markets tilt further into rate cut hopes

GBP/USD inched further into fresh highs, testing chart territory north of the 1.3000 handle on Wednesday. Broad-market hopes of a rate cut from the Federal Reserve (Fed) in September kept the Greenback underbid and gave the Pound Sterling (GBP) a leg up in the mid-week market session. Recent Fedspeak has been interpreted as firmly dovish, with market participants seeing the writing on the wall they wish to as Fed officials give a head nod to recent progress on inflation measures. Cable traders will also want to keep an eye out for any knock-on volatility from the European Central Bank's (ECB) Thursday rate call.

Rate markets have fully priced in at least a quarter-point rate trim when the Federal Open Market Committee (FOMC) gathers for a rate call on September 18, and July’s month-end meeting is still expected to keep rates flat. According to the CME’s FedWatch Tool, 98% odds of a September rate cut are fully priced in, with rate traders seeing three cuts in 2024 compared to the Fed’s own modest projections of one or two. Read more...

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EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

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