GBP gains ahead of Fed-BoE monetary policy decisions

Pound Sterling gains ahead of Fed-BoE monetary policy decisions

The Pound Sterling (GBP) performs strongly against its major peers at the start of the week, supported by the improved appeal for risk-perceived currencies and a weakening US Dollar, which is pressured by growing prospects that the Federal Reserve (Fed) will opt for a large interest rate cut on Wednesday.

Firm Fed rate cut prospects have weighed on the US Dollar (USD), with the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posting a fresh weekly low near 100.80. Read more…

GBP/USD Forecast: Pound Sterling bulls retain control on Monday

GBP/USD gathers bullish momentum in the European session on Monday and trades at its highest level in over a week above 1.3150. The pair’s near-term technical outlook suggests that the bullish bias remains unchanged. Investors, however, could move to the sidelines ahead of the Federal Reserve’s (Fed) and the Bank of England’s (BoE) monetary policy announcements later in the week.

The US Dollar (USD) stays under selling pressure after weakening against its major rivals in the second half of the previous week. The Wall Street Journal reporter Nick Timiraos, who is widely seen as a “Fed insider,” wrote last week that the size of the Fed’s rate cut at the September policy meeting will be a close call. Read more…

GBP/USD Weekly Forecast: Pound Sterling looks for further upside in UK CPI, Fed-BoE decision week

The Pound Sterling (GBP) stalled its correction from over two-year highs against the US Dollar (USD) and staged an impressive comeback, with the GBP/USD pair having tested the critical 1.3000 threshold.

GBP/USD witnessed good two-way price action, correcting sharply to a three-week low of 1.3002 in the first half of the week only to recover the weekly losses in the latter part. The sentiment around the pair was mainly driven by the dynamics of the US Dollar. The Greenback continued to remain at the mercy of the market’s expectations on the size of the interest rate cut by the US Federal Reserve (Fed) in the upcoming week. Read more…