GBP/USD Price Analysis: Pair reverses below 1.2400, focus on central banks decisions
GBP/USD snaps the two-day losing streak earlier in the day but later reverses, still trading higher around 1.2390 during the early trading hours of the European session on Monday. The pair experienced upward support, likely a result of the downbeat consumer sentiment data from the United States (US) released on Friday.
The preliminary US Michigan Consumer Sentiment Index recorded a reading of 67.7, indicating a decline from the previous figure of 69.5. This reading also fell below the expected figure of 69.1 for the month of September. Read more...
GBP/USD Forecast: Pound Sterling's recovery attempts could remain short-lived
GBP/USD lost nearly 100 pips last week and continued to stretch lower during the Asian trading hours on Monday. The pair was last seen trading at its lowest level since early June at around 1.2370. Investors, however, could stay on the sidelines ahead of this week's key macroeconomic events and make it difficult for GBP/USD to make a decisive move in either direction in the near term.
The unabated US Dollar (USD) strength last week forced GBP/USD to stay under bearish pressure. Early Monday, US stock index futures trade modestly higher, pointing to a slight improvement in risk sentiment. In case risk flows gain traction in the second half of the day, GBP/USD could erase some of last week's losses. Read more...
GBP/USD attempts to retrace the intraday losses near 1.2380
GBP/USD struggles to halt the two-day losing streak, recovering from the intraday losses and trading around 1.2380 during the European session on Monday. The pair is facing downward pressure ahead of the interest rate decisions from the United States (US) and the United Kingdom (UK).
The US Federal Reserve (Fed) is expected to maintain its current interest rates without changes in the upcoming meeting scheduled on Wednesday. Furthermore, market participants will carefully scrutinize the central bank's communications, seeking any clues or insights regarding the possible future direction of interest rates. The market is still factoring in a 25 basis points rate-hike through the end of year 2023. Read more...
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