Pound Sterling struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets
The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.
The British Pound (GBP) continues with its relative underperformance on the back of rising bets that the Bank of England (BoE) will cut interest rates at its next policy meeting in March. The expectations were reaffirmed by the disappointing UK jobs report and a fall in the UK consumer inflation to its lowest level in nearly a year. This, along with a bullish US Dollar (USD), validates the near-term negative outlook for the GBP/USD pair. Read more…
GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets
The Pound Sterling (GBP) continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected. The Bank of England’s (BoE) preferred measure of regular private sector wage growth dropped to a five-year low of 3.4%, removing a key obstacle that has kept the more hawkish Monetary Policy Committee (MPC) members from backing rate cuts.
Markets now fully expect a 25-basis-point reduction by April, with a 76% probability of a March move. Wednesday’s UK Consumer Price Index (CPI) did little to ease the burden on Bank of England (BoE) policymakers, especially after Producer Price Index (PPI) inflation and Retail Price Index figures all missed expectations. Read more…
