Pound Sterling Price News and Forecast: VCP breakout eyed after Fed, BoE

FXStreet Team FXStreet

GBP/USD Price Forecast: VCP breakout likely after Fed-BoE policy announcements

The British Pound (GBP) is up 0.15% to near 1.3345 against the US Dollar (USD) during the European trading session on Monday. The GBP/USD pair gains as the US Dollar faces selling pressure due to renewed hopes of a United States (US)-Iran diplomatic solution, following the pause in military aggression in the Middle East.

Over the weekend, the US military confirmed that further attacks on Iran would be unnecessary as the target list has been exhausted. In the European trade, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.25% lower to near 101.20. Read more...

British Pound: BoE seen on hold as risks linger – UOB

UOB strategists note GBP/USD edged up to 1.3326, with Gilts caught between fiscal risks from Prime Minister Burnham’s debut plans and the Oil price shock. A Bloomberg poll and UOB economist Lee Sue Ann both expect the Bank of England (BoE) to keep rates at 3.75%, with modest upside risks to further tightening but no imminent move given softer demand and a loosening labour market.

"GBP/USD edged up 0.1% on Friday to 1.3326, with Gilts caught between twin risks from PM Burnham's debut fiscal plans and the oil price shock." Read more...

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