GBP/USD Price Forecast: UK politics and BoE easing bets favor bears; US PPI in focus
The GBP/USD pair oscillates in a narrow band around the 1.3500 psychological mark through the first half of the European session on Friday and remains close to the weekly low, touched the previous day. The domestic political drama, along with the Bank of England (BoE) easing expectations, undermines the British Pound (GBP). Moreover, the US Federal Reserve’s (Fed) hawkish outlook acts as a tailwind for the USD and caps the currency pair.
The Green Party pulled off a landmark victory and snatched the formerly safe seat of Gorton and Denton away from Labour. The outcome is seen as a major blow to the UK Prime Minister Keir Starmer’s ailing authority and will spark further questions over his leadership of the party. Moreover, the Greens’ first-ever win in a parliamentary by-election underscores the breakdown of Britain’s decades-old two-party politics, fueling uncertainty and undermining the GBP amid the growing acceptance of a BoE interest rate cut in May. Read more…
GBP/USD Price Forecast: 20-day EMA acts as key barrier, downside likely below 1.3430
The Pound Sterling (GBP) trades marginally higher to near 1.3500 against the US Dollar (USD) during the European trading session on Friday. The GBP/USD pair ticks up as the US Dollar edges down amid sliding United States (US) Treasury yields. 10-year US bond yields have fallen to near 4%, the lowest level seen in over a year.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.2% lower to near 97.60. In Friday’s session, investors will focus on the US Producer Price Index (PPI) data for January, which will be published at 13:30 GMT. Investors will pay close attention to the US PPI data to get fresh cues on the Federal Reserve’s (Fed) monetary policy outlook. Read more…
