Pound Sterling Price News and Forecast: GBP/USD trades with mild negative bias

FXStreet Team FXStreet

GBP/USD holds above the 1.2800 mark, eyes on UK labour market, US CPI data

The GBP/USD pair remains on the defensive above the 1.2800 support during the early Asian trading hours on Tuesday. The lower bets on rate cut expectations from the Bank of England (BoE) weigh on the Pound Sterling (GBP). Investors await the UK labour market data and US CPI inflation data on Tuesday for fresh impetus. GBP/USD currently trades near 1.2814, unchanged for the day.

The BoE policymaker Catherine Mann said on Monday that the UK has a long way to go for inflation pressures to be consistent with the central bank's 2% target. According to UBS Global Research on Monday, the BoE is anticipated to begin lowering interest rates, with a 25 basis point (bps) cut in August, compared to its prior expectation of a cut in May. Read more...

GBP/USD backslides on Monday, finds near-term floor at 1.2800

GBP/USD pared away some gains on Monday, falling from 1.2860 back into the 1.2800 price handle as markets trim rate cut expectations from the Bank of England (BoE). According to the Union Bank of Switzerland (UBS), the BoE is expected to deliver a first rate trim in August versus the previously-expected May.

Investors are looking ahead to Tuesday’s UK labor figures, followed by the US Consumer Price Index (CPI) inflation print. Markets continue to chew on hopes for a rate cut from the BoE and the Federal Reserve (Fed). Read more...

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