GBP/USD retakes 1.3200 amid softer USD; upside potential seems limited
The GBP/USD pair builds on the previous day’s late rebound from the 1.3140 horizontal support, or the lowest level since May, and gains some positive traction during the Asian session on Thursday. Spot prices climb back above the 1.3200 mark in the last hour amid a modest US Dollar (USD) weakness, though the fundamental backdrop warrants some caution for bullish traders.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, retreats further from an over two-week high, touched in reaction to the Federal Reserve’s (Fed) relatively hawkish outlook on Wednesday. Investors remain concerns that a prolonged US government shutdown would affect the economic performance, which, in turn, is seen undermining the USD and offering some support to the GBP/USD pair. Read more…
GBP/USD resumes bearish ways as Fed rate cut bolsters Greenback
GBP/USD fell steeply during Wednesday’s American market session, extending a decline through the 200-day Exponential Moving Average (EMA) and pushing Cable positioning even further into bear country. GBP/USD has closed in the red for eight of the last nine consecutive trading days, pushing the Pound Sterling (GBP) into a -2.46% swing against the US Dollar (USD) top-to-bottom.
The Federal Reserve (Fed) cut its main reference rate by another 25 basis points on Wednesday, as many market participants expected. What caught investors off guard, however, was Fed Chair Jerome Powell’s press conference that struck an even more cautious note than usual. Before this week’s Fed interest rate decision, investors were confident that an October rate cut would be followed up by a third straight rate cut in December. Now, interest rate cuts through the second half of 2025 may very well be a two-and-done. Read more…
GBP/USD dips following Fed rate cut and QE drawdown confirmation
GBP/USD faced a fresh bout of downside on the intraday level, churning after the Federal Reserve (Fed) delivered a widely anticipated 25 basis point interest rate cut on Wednesday. The Federal Open Market Committee (FOMC) met investor expectations, but a notable lack of juicy headline-generating comments prevented market flows from spiraling out of control.
The Pound Sterling (GBP) faced fresh headwinds after the Fed acknowledged it would continue to ease back on Quantitative Easing (QE) practices, with the process of drawing down the Fed’s mortgage-backed asset balance sheet into long-term Treasuries by December 1. Read more…
