Pound Sterling Price News and Forecast: GBP/USD softens to around 1.2910

FXStreet Team FXStreet

GBP/USD Price Forecast: The bearish outlook remains in play near 1.2900

The GBP/USD pair weakens to near 1.2910 during the early European session on Monday. The stronger US Dollar (USD) following Donald Trump’s election win continues to undermine the major pair as traders expect the inflationary impulses will keep the US Federal Reserve (Fed) from cutting rates as much as they otherwise would have.

On the other hand, the Bank of England (BoE) reiterated that “a gradual approach to removing policy restraint remains appropriate. Monetary policy will need to continue to remain restrictive for sufficiently long.” Less dovish remarks from the UK central bank could help limit the INR’s losses in the near term. Read more...

GBP/USD Weekly Forecast: Bets on strong rebound look premature as markets shift to UK GDP, US inflation data

The Pound Sterling (GBP) staged a comeback versus the US Dollar (USD), lifting the GBP/USD pair from the lowest level in three months near 1.2835.

GBP/USD returned to positive territory for the first time in five weeks, as the global market optimism and the central banks’ policy announcements overshadowed the resurgent demand for the US Dollar. Read more...

GBP/USD struggles for firm near-term direction, remains confined in a range around 1.2900

The GBP/USD pair kicks off the new week on a softer note, albeit it lacks follow-through selling and remains confined in a range around the 1.2900 mark amid mixed fundamental cues.

The US Dollar (USD) holds steady below a four-month high touched last week amid expectations that US President-elect Donald Trump's policies would spur inflation and restrict the Federal Reserve's (Fed) ability to ease policy aggressively. This, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair, though the Bank of England's hawkish stance helps limit the downside. Read more...

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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.