Pound Sterling trades lower due to escalating BoE dovish expectations
The Pound Sterling (GBP) trades flat around 1.3470 against the US Dollar (USD) during the European trading session on Friday. The GBP/USD pair flattens even as the US Dollar Index (DXY) faces selling pressure, suggesting weakness in the British currency.
Sterling underperforms on fresh escalation in expectations that the Bank of England (BoE) will cut interest rates further this year. BoE dovish expectations accelerated this week after the release of the UK labor market data for the three months ending in August. Read more…
GBP/USD can potentially test 1.3530 – UOB Group
There is a chance for Pound Sterling (GBP) to test 1.3475; a continued rise above this level is unlikely. In the longer run, if GBP breaks clearly above 1.3475, it could rise further to 1.3505, potentially testing 1.3530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
24-HOUR VIEW: “GBP rose to a high of 1.3408 two days ago. Yesterday, when GBP was at 1.3400, we indicated that ‘there is a chance for GBP to test 1.3445.’ However, we were of the view that ‘the major resistance at 1.3475 is unlikely to come into view.’ We were not wrong, as GBP edged to a high of 1.3455. Read more…