GBP/USD remains under selling pressure near the 1.2200 mark ahead of US CB Consumer Confidence
The GBP/USD pair remains under selling pressure and trades in negative territory for the fourth consecutive week during the early European session on Tuesday. The major pair currently trades near 1.2203, losing 0.07% on the day.
The Bank of England (BoE) decided to maintain the benchmark rate unchanged at a 15-year high level of 5.25%, halting a run of 14 consecutive rate hikes since December 2021. This, in turn, might weigh on the British Pound (GBP) against the US Dollar. The BoE official stated that further meetings are possible, indicating that the BoE could raise or halt interest rates if necessary. Read more...
GBP/USD hangs near multi-month low, seems vulnerable around 1.2200 amid bullish USD
The GBP/USD pair enters a bearish consolidation phase during the Asian session on Tuesday and oscillates in a range just above its lowest level since March 17 touched the previous day. Spot prices currently trade around the 1.2220 area, though the fundamental backdrop favours bearish traders and supports prospects for an extension of the well-established downtrend witnessed over the past two months or so.
The US Dollar (USD) stands tall near the YTD peak set on Monday and is seen as a key factor that continues to act as a headwind for the GBP/USD pair. The Federal Reserve (Fed) stuck to its hawkish stance at the September policy meeting last week and reiterated the 'higher-for-longer' interest rates narrative. In fact, the US central bank warned that still-sticky inflation was likely to attract at least one more interest rate hike by the end of this year. Furthermore, policymakers see just two rate cuts in 2024 as compared to four projected previously. Read more...
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