Pound Sterling Price News and Forecast: GBP/USD steadies following the previous day’s volatile price swings
GBP/USD steadies below 1.3400 as traders digest BoE policy update and US inflation data
The GBP/USD pair stalls the previous day's pullback from the vicinity of mid-1.3400s and a nearly two-month high, though it struggles to attract meaningful buyers during the Asian session on Friday. Spot prices currently trade around the 1.3380-1.3385 region, up only 0.05% for the day, amid mixed cues.
The British Pound (GBP) draws support from the Bank of England's (BoE) hawkish rate cut on Thursday, which, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. As was expected, the BoE MPC voted 5-4 to lower the benchmark interest rate by 25 basis points (bps) to 3.75%. A close vote split, however, revealed differences within the committee, especially after this week's inflation surprise. This, in turn, forced investors to scale back their expectations for more aggressive easing next year. Read more...
GBP/USD firm as soft CPI pressures Dollar, BoE stance supports Sterling
GBP/USD surges during Thursday’s North American session as following the release of a benign US inflation report and a “hawkish” rate cut by the Bank of England (BoE). The pair trades at 1.3410 up 0.28% after reaching a daily low of 1.3340.
The US Consumer Price Index rose by 2.7% YoY in November, down from 3% in September, revealed the US Bureau of Labor Statistics (BLS). Underlying inflation dipped from the 3% threshold, down to 2.6%, revealed the data. Although the print is positive, economists warned that the 43-day US government shutdown made it impossible for BLS workers to collect some of the data they usually compile for the report. Read more...
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