GBP/USD Price Forecast: Trades with positive bias above mid-1.3300s, around 38.2% Fibo. level
The GBP/USD pair gains some positive traction for the second consecutive day on Monday as dovish Federal Reserve (Fed) bets, and the risk-on impulse keep the safe-haven US Dollar (USD) depressed. Spot prices trade just above mid-1.3300s during the Asian session and look to build on Friday’s goodish rebound from the 1.3260 area, or the lowest level since August 5.
The global risk sentiment gets a strong boost after US President Donald Trump backtracked on his threatened 100% tariffs on Chinese imports from November 1. This comes on top of expectations that the US central bank will lower borrowing costs two more times this year and concerns about a prolonged US government shutdown, which undermines the safe-haven buck. Furthermore, bets that the Bank of England (BoE) will keep interest rates on hold for the rest of this year benefit the British Pound and act as a tailwind for the GBP/USD pair. Read more…
GBP/USD Weekly Forecast: Pound Sterling sellers refuse to give up
The Pound Sterling (GBP) broke the previous consolidation against the US Dollar (USD) to the downside, as GBP/USD tested levels under 1.3300. It was all about the USD comeback against its major currency rivals that led to the renewed downside in the GBP/USD pair.
The pair hit the lowest level in ten weeks at 1.3280, after having faced rejection once again at 1.3500 in the early part of the week. The Greenback stood tall despite the extension of the US government shutdown and persistent bets for two Federal Reserve (Fed) interest rate cuts this year. Read more…
GBP/USD weakens below 1.3350, US-China trade tensions in focus
The GBP/USD pair trades on a softer note near 1.3345 during the early Asian session on Monday. The US Dollar (USD) strengthens against the Pound Sterling (GBP) despite US President Donald Trump’s tariff threat on China. The Bank of England (BoE) external member Catherine Mann is set to speak later on Monday. The US market is closed on Monday for the US Columbus Day.
Trump on Friday had threatened 100% tariffs on China from November 1. On Sunday, Beijing defended its curbs on exports of rare earth elements and equipment as a response to US aggression but stopped short of imposing new levies on US products. Economic uncertainty and escalating trade tensions between the world’s two largest economies could undermine the Greenback and create a tailwind for the major pair. Read more…