Pound Sterling rises to 1.2750 on soft US Dollar and uncertainty over BoE rate cuts
The Pound Sterling (GBP) rises to near 1.2750 against the US Dollar (USD) in Monday’s London trading session. The GBP/USD pair remains firm as bets supporting the Bank of England (BoE) reducing interest rates from the June meeting have diminished due to a slower-than-expected decline in the United Kingdom’s (UK) consumer inflation for April.
Economists forecasted that the UK headline inflation would fall to 2.1% year-over-year in April but slowed to 2.3% from the previous reading of 3.2%. Also, a nominal decline in the UK service inflation deepens fears of inflation remaining persistent for a longer period. The UK service inflation slowed slightly to 5.9% from the prior reading of 6.0%. UK’s sticky service inflation has remained a major barrier to price pressures returning to the objective rate of 2%. Read more...
GBP/USD Forecast: Pound Sterling stays bullish to start the week
GBP/USD stays in a consolidation phase near 1.2750 in the European session on Monday after closing the previous week marginally higher. The pair's near-term technical picture suggests that the bullish bias remains intact but 1.2760 could be a tough resistance to crack.
The US Dollar (USD) benefited from upbeat macroeconomic data releases in the previous week but GBP/USD managed to hold its ground as the strong inflation data from the UK revived expectations about a delay in the Bank of England's (BoE) policy pivot. Read more...
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