GBP/USD Analysis: Traders seem non-committed amid mixed cues – softer USD, Brexit woes
The GBP/USD pair extended its sideways price move for the third successive day and remained confined in over a one-week-old trading range, below the 1.2300 round-figure mark. The recent sharp decline in commodity prices eased concerns about a further rise in inflationary pressures and forced investors to reassess the prospects for aggressive Fed rate hikes. This, along with a generally positive risk tone, undermined the safe-haven US dollar and extended some support to the major. The uptick, however, lacked bullish conviction amid the UK-EU impasse over the Northern Ireland Protocol of the Brexit agreement. Read more...
GBP/USD slides to three-day low, around 1.2230 area amid modest USD uptick
The GBP/USD pair retreated nearly 60 pips from the daily swing high touched during the early European session and dropped to a three-day low, around the 1.2235-1.2230 region in the last hour.
The latest Brexit-related development over the Northern Ireland Protocol has raised the risk of fresh tension between Britain and the European Union. In fact, the UK House of Commons on Monday voted 295 to 221 in favour of a controversial bill that would unilaterally overturn part of Britain's divorce deal from the EU agreed in 2020. Read more...
GBP/USD: BoE prioritizing growth over containing inflation to favour downside – CIBC
GBP/USD is moving below 1.23. The Bank of England (BoE) prioritizing growth over containing inflation suggests GBP downside, compounded by political risks, including a potential trade spat with the EU, economists at CIBC Capital Markets report.
“Sliding consumer sentiment and spending, as real earnings head lower, will help squeeze demand-side inflationary pressures out of the system. Building macro headwinds suggest that the BoE will not be as aggressive as the market discounts. We expect a protracted policy pause post once rates reach 1.75% in September.” Read more...
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