Pound Sterling Price News and Forecast: GBP/USD stretches to three-month highs at 1.3570

FXStreet Team FXStreet

British Pound hits three-month highs at 1.3570 amid generalised US Dollar weakness

The British Pound (GBP) extends gains for the second consecutive day on Monday, as investors cut back US Dollar (USD) long positions, amid a dovish repricing of the Federal Reserve’s (Fed) monetary policy. The pair has reached levels above Friday’s peak at 1.3561 to hit three-month highs at 1.3571 so far.

The British Pound is drawing support from broad-based US Dollar weakness, as investors come to terms with the fact that the Fed will not hike interest rates in September and probably not in the rest of the year either. Read more...

British Pound gathers strength above 1.3550 as softer US data cools Fed hike bets

The GBP/USD pair gains traction to near 1.3555 during the early European trading hours on Monday. The US Dollar (USD) weakens against the British Pound (GBP) as bets for a US Federal Reserve (Fed) rate hike come down. Traders will keep an eye on the UK employment and inflation reports, which are due later this week.

US Retail Sales fell in July for the first time in nine months as the boost from big tax refunds faded, the US Census Bureau reported on Friday. Signs of tame US inflation data added to unexpected job losses last month in bolstering financial market expectations that the Fed would not raise interest rates at its September 15-16 policy meeting. Read more...

British Pound trades near three-month top as fading Fed hike bets undermine USD

The GBP/USD pair attracts some dip-buyers at the start of a new week and climbs above mid-1.3500s during the Asian session, closer to over a three-month high touched on Friday. Moreover, the prevalent US Dollar (USD) selling bias favors bullish traders and suggests that the path of least resistance for spot prices remains to the upside.

The US inflation data released last week painted a picture of moderating price pressures. Moreover, data released on Friday showed that US Retail Sales fell 0.6% in July, marking the biggest monthly fall since May last year and pointing to a slowdown in consumer spending. Traders were quick to react and further tempered their bets for an immediate interest rate hike by the US Federal Reserve (Fed). The outlook, in turn, keeps USD bulls on the defensive and acts as a tailwind for the GBP/USD pair. Read more...

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