Pound Sterling Price News and Forecast: GBP/USD retraces its recent losses around 1.2710

FXStreet Team FXStreet

GBP/USD moves above 1.2700 due to rising odds of a Fed rate cut in September

GBP/USD retraces its recent losses, trading around 1.2710 during the Asian session on Wednesday. This upside could be attributed to the tepid US Dollar (USD) following the rising expectations of a more aggressive rate cut starting in September after the weaker US employment data in July raised the fear of a looming US recession.

According to the CME FedWatch tool, there is now a 67.5% probability of a 50-basis point (bps) interest rate cut by the US Federal Reserve (Fed) in September, up from 13.2% a week earlier. Read more...

GBP/USD withers into a fresh five-week low

GBP/USD backslid nearly a full percent on Tuesday as the Pound Sterling continues to deflate against the broader FX market. The US Dollar found a soft patch as markets pivot back into a risk-on stance fueled by ongoing hopes for a September rate cut from the Federal Reserve (Fed), but a rapidly-depreciating GBP sent Cable into fresh five-week lows just south of 1.2700.

The economic calendar is notably thin for both currencies on Wednesday, leaving markets to whittle away the hours until something structurally changes. Read more...

GBP/USD Price Forecast: Tumbles below 1.2800 to five-week low

On Tuesday, the Pound Sterling prolonged its agony and extended its losses against the Greenback. Although sentiment has improved following Monday's stock riot, the buck remains bid, as shown by the GBP/USD pair, which trades at 1.2709, down by 0.49%.

During the trading session, the GBP/USD tested the 100-day moving average (DMA) At 1.2683 and dipped to a new five-week low of 1.2672, but buyers emerged and lifted the exchange rate above 1.2700. Despite this, momentum favors sellers, as depicted in the Relative Strength Index (RSI), standing bearish. Read more...

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FXStreet

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.