GBP advances on improved market mood

GBP/USD Forecast: Pound Sterling holds above key support levels, encouraging buyers

Despite the risk-averse market environment and the persistent US Dollar (USD) strength, GBP/USD registered modest gains on Wednesday. Early Thursday, the pair continues to edge higher toward 1.2700.

The hawkish tone seen in the minutes of the Federal Reserve’s (Fed) December policy meeting, combined with a sharp decline in Wall Street’s main indexes, helped the USD gather strength mid-week. GBP/USD, however, held its ground throughout the day. The sharp decline seen in EUR/GBP on Wednesday suggested that Pound Sterling captured capital outflows out of the Euro to stay resilient against its rivals. Read more…

Pound Sterling advances on improved market mood, outperformance in UK Services PMI

The Pound Sterling (GBP) extends recovery on Thursday in the European session, as market sentiment improves after a subdued beginning of the year for risk assets. The GBP/USD pair recovers further as discussions about rate cuts from the Federal Reserve (Fed) look firm while the Bank of England (BoE) is still emphasizing the need to keep interest rates higher for a longer period. 

Meanwhile, upbeat S&P Global UK Composite and Services PMI have added strength to the Pound Sterling’s recovery. The Composite and Services PMI at 52.1 and 53.4 outperformed expectations of 51.7 and 52.7 respectively. Read more…