Pound Sterling Price News and Forecast: GBP/USD pair trades at one-month highs just above 1.3400

British Pound attempts to consolidate above 1.3400 amid US Dollar’s weakness

The British Pound (GBP) keeps heading higher against a weaker US Dollar (USD) on Thursday, as markets brace for Federal Reserve (Fed) policy next week, while in the UK the conditions are set for a Bank of England (BoE) rate hike in November. Against this background, the GBP/USD pair trades at one-month highs just above 1.3400, on track for a 1.4% rally over the last two weeks.

UK data released on Wednesday confirmed that high energy prices are boosting consumer inflation, adding pressure on the BoE to tighten borrowing costs. UK Gross Domestic Product (GDP) data, released last week, revealed that the economy keeps growing, which will make the decision easier for the central bank’s policymakers at the November 5 meeting. Read more...

GBP/USD Price Forecast: Holds onto monthly high near 1.3410

The British Pound (GBP) reflects strength against the US Dollar (USD) on Thursday, trading firmly near the monthly high at around 1.3410 in the European trade. The GBP/USD pair strengthens as hot United Kingdom (UK) Consumer Price Index (CPI) data for September has boosted hawkish Bank of England (BoE) expectations.

Analysts at Nomura highlight that the latest UK inflation release showed renewed upside pressure, with “both headline and services inflation” in the September report coming in “above consensus expectations.” They note that the BoE’s core gauge of underlying price pressures remains stubborn, stressing that “the BoE’s core measure service prices momentum has been sticky over the past few months.” Read more...

British Pound consolidates near September 16 highs, just below 1.3400 vs subdued USD

The GBP/USD pair enters a bullish consolidation phase during the Asian session on Thursday, trading just below the 1.3400 mark and near its highest level since September 16, touched earlier this week. Meanwhile, the fundamental backdrop seems tilted in favor of bulls and backs the case for an extension of a one-week-old uptrend.

The US Dollar (USD) struggles to attract any meaningful buyers and remains close to a nearly three-week low set on Tuesday amid declining US bond yields. The British Pound (GBP), on the other hand, is underpinned by the growing acceptance that the Bank of England (BoE) will hike interest rates in November, bolstered by a rise in UK consumer price inflation to an 11-month high in September. This, in turn, acts as a tailwind for the GBP/USD pair and validates the positive outlook. Read more...