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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