Pound Sterling Price News and Forecast: GBP/USD trades on a softer note near 1.2895

FXStreet Team FXStreet

GBP/USD weakens below 1.2900, US GDP data looms

The GBP/USD pair edges lower to 1.2895 during the Asian trading hours on Thursday. The higher possibility that the Bank of England (BoE) will begin cutting interest rates in August has undermined the Pound Sterling (GBP). In the absence of top-tier UK economic data releases, the GBP/USD pair will be influenced by the USD. The release of preliminary US Gross Domestic Product (GDP) for the second quarter (Q2) will be in the spotlight.

The majority of economists said in a Reuters poll that the BoE is expected to cut the bank rate to 5% at its August meeting next week. JP Morgan analyst, Allan Monks, noted that "we look for a 25 basis point rate cut at next week's meeting, although the call appears much closer than it did several weeks back. The case for lower rates is far from clear.” Read more...

GBP/USD Price Analysis: Stuck in range, clings to 1.2900

The Pound Sterling clings to minimal gains, though it remains stuck within the 1.2880-1.2940 range against the Greenback, unable to crack immediate resistance to push the GBP/USD pair toward the 1.3000 mark. At the time of writing, the major trades at 1.2926 after bouncing off daily lows of 1.2877.

The pair remained subdued for the fourth straight day, glued at around 1.2900; even though UK PMI data was stronger than expected, the pair failed to gain traction. Conversely, sellers pushed the GBP/USD three times below 1.2900 but failed to achieve a daily close below the latter, which could pave the way for a deeper pullback. Read more...

Author

FXStreet Team

FXStreet

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.