GBP/USD Weekly Forecast: Pound Sterling not out of the woods yet as US inflation looms
The Pound Sterling (GBP) closed the week deep in the red against the US Dollar (USD), as the GBP/USD extended the correction from 30-month highs to below 1.3100.
GBP/USD failed to sustain at higher levels and returned to negative territory, giving up almost 300 pips in the past week. The pair faced a double whammy, with the resurgence of the demand for the US Dollar on one hand while on the other side, the Pound Sterling was thrown under the bus on the Bank of England’s (BoE) dovish policy expectations and the risk-averse market environment. Read more…
GBP/USD drifts higher above 1.3100, potential upside seems limited
The GBP/USD pair posts modest gains to near 1.3130, snapping the three-day losing streak during the early Asian session on Monday. However, the upside of the major pair might be limited amid the reduced bets of the Federal Reserve interest rate cuts after the upbeat US Nonfarm Payrolls (NFP) on Friday.
The Fed lowered its cutting cycle by 50 basis points (bps) in September but stronger-than-expected reduced the odds that the larger than “normal” cut will be repeated. According to the CME Fedwatch Tool, financial markets are now pricing in nearly 97.4% chance of 50 basis points (bps) Fed rate cuts in September, up from 31.1% before the NFP data. Read more…
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