GBP/USD Weekly Outlook: Pound Sterling faces renewed downside risks amid US tariff uncertainties
The Pound Sterling (GBP) demand fizzled against the US Dollar (USD), fuelling a GBP/USD correction from ten-week highs of 1.2716. Despite the resilience shown in the first half of the week, the Pound Sterling succumbed to the unabated haven demand for the Greenback in the latter part. The GBP/USD pair, therefore, snapped its three straight weekly gains, pulling back from the levels last seen in December 2024.
The pair’s early advance was sponsored by the expectations of divergent interest rate cut outlooks between the US Federal Reserve (Fed) and the Bank of England (BoE). Despite hot UK inflation data and gloomy economic prospects, the BoE is predicted to implement fewer rate cuts this year. Read more...
GBP/USD retakes 1.2600 amid modest USD weakness; upside potential seems limited
The GBP/USD pair attracts some dip-buyers during the Asian session on Monday and now seems to have stalled its retracement slide from levels beyond the 1.2700 mark, or over a two-month peak touched last week. The intraday move up lifts spot prices back above the 1.2600 round figure in the last hour and is sponsored by a modest US Dollar (USD) weakness.
The growing pessimism over the outlook for the US economy, along with bets for further policy easing by the Federal Reserve (Fed), fails to assist the buck to capitalize on a three-day-old recovery from over a two-month low. In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, kicks off the new week on a weaker note and has now reversed a major part of Friday's move up to over a one-week high. Read more...
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