GBP/USD Forecast: Sellers could hesitate if Pound Sterling stabilizes above 1.2400
GBP/USD has extended its decline to test 1.2400 in the European morning on Monday. Sellers could move to the sidelines and allow the pair to stage a recovery in the near term if that level proves to be strong support.
Renewed US Dollar (USD) strength ahead of the weekend caused GBP/USD to erase a large portion of its weekly gains. After the US Bureau of Labor Statistics (BLS) reported on Friday that Nonfarm Payrolls (NFP) rose 339,000 in May, compared to the market expectation of 190,000, the US Dollar Index (DXY) gained nearly 0.5%. Read more ...
GBP/USD Price Analysis: More downside seems warranted amid a breakdown below 1.2400
The GBP/USD pair has slipped sharply below the round-level support of 1.2400 in the European session. The Cable is facing immense selling pressure as the US Dollar has been strengthened after robust payroll additions in the United States in May fetched interest rate hike bets into the picture.
Additions of fresh Employment in May were extremely solid despite the Federal Reserve (Fed) consistently raising interest rates and US regional banks have inculcated more filters into their credit disbursement mechanism to maintain their asset quality amid a turbulent environment. Read more ...
GBP/USD drops to 1.2400 mark, fresh daily low amid sustained USD buying
The GBP/USD pair kicks off the new week on a weaker note and retreats further from its highest level since May 16, around the 1.2540-1.2545 region touched on Friday. Spot prices extend the steady intraday descent through the early European session and drop to the 1.2400 neighbourhood, or a fresh daily low in the last hour.
The post-NFP US Dollar (USD) bounce from over a one-week low remains uninterrupted amid the uncertainty over the Federal Reserve's (Fed) rate-hike path and drags the GBP/USD pair lower for the second successive day. It is worth recalling that a slew of influential Fed officials last week backed the case for skipping an interest rate hike, though the markets are still pricing in the possibility of another 25 bps lift-off in June. Read more ...
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