GBP/USD Weekly Forecast: Pound Sterling targets further gains as BoE, NFP loom
The Pound Sterling (GBP) accelerated its bullish momentum against the US Dollar (USD), with GBP/USD recording its highest level in four years near 1.3870 before experiencing a late pullback.
Once again, it was all about the USD’s performance and GBP/USD dancing to its tune. Investors’ confidence in the US assets, such as the Greenback, US Treasury bonds, etc. continued to diminish amid US President Donald Trump’s erratic international policies and attacks on the Federal Reserve’s (Fed) independence. Read more…
GBP/USD Price Forecast: Bears seem non-committed as USD await Trump’s Fed chair pick
The GBP/USD pair meets with a fresh supply following the previous day’s good two-way price swings and sticks to a negative bias through the first half of the European session on Friday. The US Dollar (USD) gains some positive traction in reaction to the optimism over a Senate deal to fund the federal government, which, in turn, is seen as a key factor exerting pressure on spot prices. The lack of follow-through selling, however, warrants some caution before positioning for an extension of the retracement slide from the highest level since September 2021, around the 1.3870 region, touched earlier this week on Tuesday.
Democrats and the White House have reached an agreement to temporarily fund the Department of Homeland Security as lawmakers rush to pass the spending package by Friday to avoid a partial US government shutdown. This assists the USD Index (DXY), which tracks the Greenback against a basket of currencies, to move further away from a four-year trough set on Tuesday. Despite the bounce, the USD remains on track to register its second straight week of losses amid economic and policy risks on the back of US President Donald Trump’s erratic decisions, and attacks on the Federal Reserve’s (Fed) independence. Read more…
