Pound Sterling Price News and Forecast: GBP/USD gains sharply against US Dollar ahead of UK elections

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Pound Sterling gains sharply against US Dollar ahead of UK Elections and US NFP

The Pound Sterling (GBP) strengthens against the US Dollar (USD) and rises to near 1.2760 in Thursday’s European session. The GBP/USD rises amid growing speculation that the US Federal Reserve (Fed) will start reducing interest rates from the September meeting.

According to the CME FedWatch tool, 30-day Federal Funds futures pricing data shows that the probability of rate cuts in September has increased to 72.6% from 66% recorded a week ago. Expectations for Fed rate cuts in September strengthened after a few United States (US) economic indicators showed that the labor market strength appears to have started fading and the economic health has become sluggish. Read more...

GBP/USD Forecast: Pound Sterling holds steady on UK election day

GBP/USD advanced toward 1.2800 and reached its highest level since June 13 on Wednesday. With the market action turning subdued on Thursday, the pair entered a consolidation phase at around 1.2750.

The renewed selling pressure surrounding the US Dollar (USD) fuelled a leg higher in GBP/USD as markets reacted to dismal macroeconomic data releases. The ADP's monthly publication showed that payrolls in private sector increased 150,000 in June, missing the market expectation of 160,000, and the Department of Labor announced that there were 238,000 first-time applications for unemployment benefits in the week ending June 29, up from 233,000 in the previous week. Read more...

GBP/USD strength ahead of election day

With just one day to go until Election Day in the United Kingdom, the only thing in doubt is the scale of the Conservatives’ defeat.

Despite Boris Johnson’s surprise appearance last night in Chelsea asking voters to support the government in spite of his complicated relationship with Prime Minister (PM) Rishi Sunak, the PM is preparing for his exodus as the latest polls predict Labour will go on to win one of the largest majorities in British history. Read more...

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EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.