Pound Sterling Price News and Forecast: GBP/USD holds positive ground near 1.2795

FXStreet Team FXStreet

GBP/USD extends upside near 1.2800 ahead of US NFP data

The GBP/USD pair trades in positive territory for the third consecutive day around 1.2795 during the early Asian session on Friday. In the absence of key UK economic data releases, the GBP/USD pair will be influenced by the USD. All eyes will be on the US Nonfarm Payrolls (NFP) data for May, which is due later on Friday.

Traders raised their bets that the US Federal Reserve (Fed) would cut interest rates later this year, dragging the US Dollar (USD) and bond yields lower. Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, drops to 104.10, while the US 10-year benchmark edges lower to 4.285%. Markets have priced in about 68% odds of a Fed rate cut in September, up from 55% at the beginning of the week, according to the CME FedWatch tool. Read more...

GBP/USD Price Analysis: Consolidates below strong resistance at around 1.2800

The Pound Sterling stays firm during Thursday’s North American session, yet it remains below 1.2800 after hitting a daily high of 1.2809 against the US Dollar. Another major central bank slashed interest rates, while softer US jobs data keep the pair at around current spot prices. The GBP/USD trades at 1.2772, virtually unchanged.

The GBP/USD is consolidated and remains near the weekly highs but beneath 1.2800. Although the pair tested the latter, the pair seems reluctant to a decisive break above that level that could push prices to the year-to-date (YTD) high of 1.2894. Read more...

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Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.