Pound Sterling struggles to stabilize against US Dollar despite dovish Fed remarks
The Pound Sterling (GBP) strives to gain ground against the US Dollar (USD) during Friday’s European trading session after posting a fresh two-month low around 1.3280 earlier in the day. The outlook of the GBP/USD pair remains vulnerable as the US Dollar trades firmly, with an increase in its safe-haven demand following political developments in Japan and France.
At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near a fresh two-month high of 99.56 posted on Thursday. Read more…
GBP/USD: Might continue to decline despite oversold conditions – UOB Group
Pound Sterling (GBP) could continue to decline despite oversold conditions, but it remains to be seen if it can reach 1.3245 today. In the longer run, the price action has resulted in a marked increase in downward momentum; the next technical target is at 1.3200, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
24-HOUR VIEW: “We did not expect GBP to plunge to a low of 1.3280 yesterday (as we were expecting range-trading). The sharp decline is oversold, but strong downward momentum could continue to outweigh the oversold conditions. In other words, GBP could continue to weaken today. Read more…