Pound Sterling Price News & Forecast: GBP/USD advances as traders digest solid US jobless claims

FXStreet Team FXStreet

British Pound climbs as UK inflation keeps BoE hike bets alive

The Pound Sterling (GBP) advances on Thursday during the North American session, up 0.25% after US economic data showed that the labor market remains solid, despite a weaker Nonfarm Payrolls in July. The GBP/USD pair trades at 1.3639 after reaching a daily high of 1.3659, its highest level since February.

The Greenback has recovered some ground after posting losses, following the US Department of the Treasury's announcement of a bond buyback program. The Treasury’s goal is to provide liquidity for the long end of the curve, but markets interpreted the move as a form of Yield Curve Control (YCC). Read more...

British Pound: Sustained break above 1.3650 may open 1.41 – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note that GBP/USD gains into the mid-1.36s are driven more by US Dollar (USD) weakness than intrinsic British Pound (GBP) strength, though United Kingdom (UK) survey data show improving manufacturing orders and pricing power. Technically, Cable has met the near-term objective of retesting the May peak, and a sustained move above 1.3650/60 is seen implying scope for an extension towards 1.41 this year.

"Sterling gains to the mid-1.36s largely reflect our general outlook for the pound but the story is clearly more about USD weakness than GBP strength at the moment." Read more...

British Pound gains as US Dollar softens on Treasury bond buybacks

GBP/USD extends its gains for the second successive day, trading around 1.3630 during the European hours on Thursday. The pair appreciates as the US Dollar (USD) faces challenges, driven by the decision of the US Treasury Department to stabilize domestic bond markets.

US Treasury announced plans to curb surging yields and alleviate market liquidity concerns by doubling its buyback operations for long-dated securities maturing in 10 to 30 years. This increased intervention aims to cap long-term borrowing costs and enhance overall global US Dollar liquidity, which could ultimately exert downside pressure on the currency moving forward. Read more...

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GBP/USD keeps the firm tone above 1.3600

GBP/USD clings to its daily gains, although it gives back some of them and recedes toward the 1.3630-1.3620 band on Thursday. Cable’s uptick comes despite the modest bounce in the Greenback, while investors gear up for key data releases on the UK calendar on Friday.

EUR/USD treads water above 1.1670

EUR/USD now trades with modest losses around 1.1670, coming all the way down from earlier tops beyond 1.1700 the figure. The pair’s decline follows the acceptable rebound in the US Dollar as market participants continue to closely follow developments from the US money market.

Gold trims losses, back above $4,500

Gold manages to regain some composure and reclaim the area beyond the key $4,500 mark per troy ounce on Thursday. The yellow metal’s daily decline comes amid the humble improvement in the US Dollar while US Treasury yields remain on the rise following Wednesday’s marked retracement across the curve.

Crypto Today: Bitcoin, Ethereum, XRP extend gains as ETFs inflows and improved sentiment boost outlook

Cryptocurrency prices are extending gains on Thursday, led by Bitcoin’s (BTC) climb above $70,000. Ethereum (ETH) remains bullish, trading above $2,200, while Ripple (XRP) has recovered above $1.15 as bulls tighten their grip.

US Treasury doubles long-dated bond buybacks: Why are yields rising again?

US Treasury yields stabilize on Thursday after Wednesday’s sharp decline, with the 10-year yield edging back up to 4.672%. The US Treasury doubled the size of some long-dated debt buybacks, a surprise decision that helped ease the recent surge in yields.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.