GBP/USD moves sideways near 1.2720

GBP/USD Forecast: Pound Sterling could have a hard time finding direction

GBP/USD started to move sideways slightly above 1.2700 in the last week of 2023 after failing to capitalize on the broad US Dollar (USD) weakness in the previous week. The pair could have a difficult time making a decisive move in either direction ahead of the New Year’s holiday.

Although the USD Index fell nearly 1% last week, GBP/USD closed virtually unchanged. Latest macroeconomic data releases from the UK showed that inflation continued to soften at a faster pace than expected while the economic activity continued to lose momentum. Read more…

GBP/USD moves sideways near 1.2720 with a positive bias amid stable US Dollar

GBP/USD hovers around 1.2720 during the Asian session on Wednesday. The US Dollar (USD) encounters downward pressure against Pound Sterling (GBP) as growing speculations of potential easing by the US Federal Reserve (Fed).

The weakening sentiment is intensified by the fall in US Treasury yields, contributing to the factors eroding the strength of the US Dollar. The 2-year and 10-year yields on US bond coupons trade lower, standing at 4.29% and 3.88%, respectively, at the time of writing. Read more…

Pound Sterling clings to gains despite deepening UK recession fears

The Pound Sterling (GBP) demonstrates volatility contraction in a thin-trading week. The GBP/USD pair remains broadly upbeat as investors hope that the Bank of England (BoE) will start its rate-cut campaign later than the Federal Reserve (Fed) as inflationary pressures in the United States are in a clear downtrend.

Investors continue to channelize liquidity into the Pound Sterling despite deepening fears of a recession in the United Kingdom economy. As per the latest estimates, the British economy contracted by 0.1% in the July-September period. According to the latest projections from the BoE, the economy is expected to remain stagnant in the last quarter this year. The UK economy would be in a technical recession if it contracts again. Read more…