GBP falls slightly ahead of BoE Mann’s speech

GBP/USD Forecast: Pound Sterling could struggle to clear 1.2650

GBP/USD went into a consolidation phase above 1.2600 after closing the previous two trading days in positive territory. The near-term technical outlook suggests that the pair is having a difficult time gathering bullish momentum.

The positive shift seen in risk mood on Wednesday, as reflected by the bullish opening in Wall Street, caused the US Dollar (USD) to weaken against its rivals. Later in the American session, however, the USD managed to find a foothold as the benchmark 10-year US Treasury bond yield edged higher. Minneapolis Federal Reserve President Neel Kashkari told CNBC that two to three rates cuts would be appropriate this year. Read more…

Pound Sterling falls slightly ahead of BoE Mann’s speech

The Pound Sterling (GBP) faces nominal selling pressure in Thursday’s European session. The lack of fresh economic triggers has increased anxiety among investors. The GBP/USD pair broadly consolidates as traders await commentary from Bank of England (BoE) policymaker Catherine Mann for more guidance on future interest rates. If interest rates remain high in the UK compared to counterparts, GBP will likely be bullish as higher interest rates tend to attract more significant foreign capital inflows.

On Wednesday, BoE Deputy Governor Sarah Breeden joined Chief Economist Huw Pill and said that the central bank is now focusing on the length of time that interest rates are required to remain at current levels. Read more…