Pound Sterling Price News and Forecast: GBP/USD remains close to a one-month low touched last week

FXStreet Team FXStreet

GBP/USD Weekly Forecast: Pound Sterling struggles as low inflation propels BoE rate cut bets

The Pound Sterling (GBP) fell for the third consecutive week against the US Dollar (USD), as the GBP/USD pair tested levels below the 1.3000 round level for the first time since mid-August before staging a late recovery.

Markets turned more dovish on the Bank of England’s (BoE) monetary policy outlook while sealing in a smaller interest-rate cut by the US Federal Reserve (Fed), thus strengthening the US Dollar’s advance at the expense of the Pound Sterling. Read more...

GBP/USD consolidates around mid-1.3000s, seems vulnerable amid bullish USD

The GBP/USD pair struggles to capitalize on modest recovery gains registered over the past two days and oscillates in a narrow range, around the 1.3050-1.3045 region during the Asian session on Monday. Spot prices remain well within striking distance of a one-month low touched last Thursday and seem vulnerable to prolong the recent retracement slide from the 1.3435 area, or the highest level since March 2022.

A surprise fall in the UK Consumer Price Index (CPI) to the lowest level since April 2021 and below the Bank of England's (BoE) 2% target lifted bets for a 25 basis point (bps) interest rate cut at the November 7 meeting. Furthermore, the money markets are pricing in the possibility of another BoE rate cut in December, which might continue to undermine the British Pound (GBP). This, along with the underlying bullish sentiment surrounding the US Dollar (USD) validates the negative outlook for the GBP/USD pair. Read more...

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