Pound Sterling Price News and Forecast: GBP/USD holds gains after hawkish comments

FXStreet Team FXStreet

GBP/USD Forecast: Why BOE bullishness is insufficient to stop the dollar

Banking on the Bank of England's bullishness? That might have to wait for after the long weekend as the dollar has fresh reasons to rise. According to the New York Times, US President Joe Biden will unveil a large $6 trillion budget – on top of his ambitious infrastructure plans. The news sent investors away from US debt, lifting Treasury yields and making the dollar more attractive.

Thursday's data releases also supported the greenback. Weekly jobless claims hit a new pandemic low of 406,000 and Non-defense ex-air Durable Goods Orders – the core of the core – surged by 2.3%, reflecting strong investment in April. Read more...

GBP/USD outlook: Sterling holds gains after hawkish comments from BoE policymaker

Cable is consolidating after Thursday’s 0.60% jump on comments from BoE policymaker Vlieghe who said that the central bank could raise interest rates as soon as the first half of 2022 if the labor market recovers faster than expected.

Fresh optimism lifted pound although Vlieghe pointed that the BoE’s action is more likely in the second half of the year, with yesterday’s rally marking the biggest one-day gains since May 10 and pushed the price to the upper side of two-week range. Read more...

Daily technical and trading outlook – GBP/USD

GBP/USD - 1.4190. Although cable briefly dipped to a 9-day low of 1.4092 in Asia y'day, price then rallied to 1.4140 in Europe, then to session highs of 1.4218 in NY on hawkish comments fm BoE's Vlieghe b4 retreating on profit-taking.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD's demand following free fall in global stocks. Although cable rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb, subsequent fall to 1.36 70 in Apr signals temp. top is made. Read more...

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FXStreet Team

FXStreet

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