Pound Sterling Price News and Forecast: GBP/USD lacks firm intraday direction on Wednesday

FXStreet Team FXStreet

GBP/USD flat lines below 1.2700, looks to US data/FOMC minutes for some impetus

The GBP/USD pair struggles to build on the overnight goodish rebound from the 1.2615 area, or a multi-day low and oscillates in a narrow band during the Asian session on Wednesday. Spot prices remain confined in a familiar range held over the past two weeks or so and currently trade just below the 1.2700 round-figure mark.

Against the backdrop of the Bank of England's (BoE) dovish pause in June, which lifted bets for a rate cut in August, the anxiety surrounding the upcoming UK general elections on Thursday acts as a headwind for the British Pound (GBP). The US Dollar (USD), on the other hand, struggles to attract any meaningful buyers in the wake of Fed Chair Jerome Powell's dovish-sounding remarks on Tuesday, saying that the US economy has made significant progress on inflation and is back on the disinflationary path. Read more...

GBP/USD extends upside above 1.2650, eyes on US data/FOMC Minutes

The GBP/USD pair trades in positive territory for the fifth consecutive day around 1.2688 on Wednesday during the early Asian session. The USD Index (DXY) declines below the 106.00 hurdle, which supports the major pair. Investors await the US June ADP Employment Change, ISM Services PMI, along with the FOMC Minutes, which are due later on Wednesday.

On Tuesday, US Federal Reserve Chair Jerome Powell stated that US inflation is cooling again after higher readings earlier this year. Still, he wants to see more evidence before being confident enough to start cutting interest rates. Powell added that the US economy and job market remain strong, which means the central bank can take its time in deciding when rate cuts are appropriate. Read more...

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FXStreet

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.