GBP/USD Forecast: Pound Sterling stabilizes near key support level
GBP/USD turned south on renewed US Dollar (USD) strength and lost 0.7% last week. The pair fluctuates in a very narrow band during the European session morning but the technical outlook suggests that the bearish bias stays intact.
Upbeat macroeconomic data releases from the US provided a boost to the USD in the second half of the previous week. On Friday, the data published by the Bureau of Economic Analysis showed that the core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's (Fed) preferred gauge of inflation, rose 0.2% on a monthly basis, as forecast. This reading allowed the USD to extend its rebound into the weekend. Read more...
GBP/USD advances toward 1.3150 due to risk-on mood
GBP/USD halts its three-day losing streak, trading around 1.3140 during the Asian hours on Monday. The US Dollar (USD) faces challenges due to improved market optimism amid rising dovish expectations surrounding the US Federal Reserve (Fed).
However, July's US Personal Consumption Expenditures (PCE) Index data led traders to scale back expectations of an aggressive Federal Reserve rate cut in September. PCE Price Index increased by 2.5% year-over-year in July, matching the previous reading of 2.5% but falling short of the estimated 2.6%. Meanwhile, the core PCE, rose by 2.6% year-over-year in July, consistent with the prior figure of 2.6% but slightly below the consensus forecast of 2.7%. Read more...
GBP/USD Weekly Forecast: Pound Sterling strength hinges on US Nonfarm Payrolls
The buying interest in the Pound Sterling (GBP) against the US Dollar (USD) remained unabated, sending the GBP/USD pair to a 29-month-high above 1.3250 before sellers fought back control in the second half of the week.
GBP/USD extended the previous week’s winning momentum and recorded a 29-month high at 1.3266, as the US Dollar downside gathered steam in the early part of the week. US Federal Reserve (Fed) Chairman Jerome Powell’s dovish remarks at the Jackson Hole Symposium on August 23 continued to ramp up dovish expectations surrounding potential interest-rate cuts later this year, exacerbating the pain in the USD. Read more...
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