GBP/USD holds ground above 1.3300 due to BoE’s cautious outlook
GBP/USD inches higher after three days of losses, trading around 1.3310 during the Asian hours on Friday. The pair may appreciate as the Pound Sterling (GBP) may gain ground amid cautious sentiment surrounding the Bank of England’s (BoE) monetary policy stance.
The BoE policymaker Catherine Mann said on Thursday that the monetary policy must remain restrictive for longer to create an environment conducive to growth. Mann also added that ” Inflation remains persistent and the outlook for growth remains modest,” per Reuters. Read more…
GBP/USD crashes to 1.3300 as risk-off sentiment drives Greenback gains
GBP/USD accelerated into the bearish side on Thursday, falling nearly eight-tenths of one percent and sending Cable bids into the 1.3300 handle for the first time since early August. Broad-market investor sentiment is beginning to crumble amid the ongoing US government shutdown, which shows no signs of slowing.
The US government’s ongoing shutdown has officially extended past the one-week mark, reaching its ninth day on Thursday. Investors initially showed little to no reaction to the shuttering of federal services, but market apprehension is slowly on the rise as the US Senate shows no signs of progress. Senate Republicans have rejected multiple budget bridging proposals from Democrats, as the two sides of the US government vote down party lines. Read more…
GBP/USD falls to two-month low as US Dollar momentum strengthens
GBP/USD tumbles during the North American session on Thursday as the US Dollar reaches a 9-week high, as depicted by the US Dollar Index (DXY), hitting 99.51 as hedge funds increase bets on USD gains towards the year-end. At the time of writing, the pair trades at 1.3314, down 0.67%, its lowest level since August 6.
US equities turned negative in the day, boosting the US Dollar, which is registering weekly gains of over 1.63% as of writing. A Bloomberg article reported that “Funds in Europe and Asia have ramped up option trades this week based on the view that currencies such as the Euro and Yen will weaken against the Dollar.” Read more…
