Pound Sterling Price News and Forecast: GBP/USD extends its losses on the second successive day

FXStreet Team FXStreet

GBP/USD follows the downward path near 1.2320, focus on BoE policy decision

GBP/USD expands losses on the second successive day, trading lower around 1.2320 during the Asian session on Thursday. US Federal Reserve’s (Fed) hawkish stance exerts downward pressure on the pair.

As anticipated, the Fed chose to keep the existing benchmark policy rates unchanged at 5.5% during the meeting held on Wednesday. Read more...

GBP/USD drops to fresh multi-month low amid sustained USD buying, ahead of BoE decision

The GBP/USD pair remains under some selling pressure for the second successive day on Thursday and drops closer to the 1.2300 round figure, or a fresh low since early June during the Asian session.

The US Dollar (USD) manages to preserve the previous day's post-FOMC recovery gains from over a one-week low and remains well within the striking distance of a six-month high, which, in turn, is seen exerting pressure on the GBP/USD pair. As was widely anticipated, the Federal Reserve (Fed) decided to leave interest rates unchanged, though maintained its forecast for rates to peak at 5.5% to 5.75% this year, keeping the door open for one more 25 bps lift-off in 2023. Moreover, policymakers now see the benchmark rate at 5.1% next year, suggesting just two rate cuts in 2024 as compared to four rate cuts projected previously. Read more...

Author

FXStreet Team

FXStreet

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.