GBP/USD clings to modest intraday gains above mid-1.2100s

GBP/USD Forecast: Sellers look to retain control as Pound Sterling stays below key hurdle

GBP/USD closed the last two trading day of the previous week in negative territory. Although the pair managed to stage a modest rebound early Monday, it failed to gather momentum. 

The risk-averse market atmosphere ahead of the weekend forced GBP/USD to stay on the back foot. Meanwhile, the University of Michigan’s Consumer Sentiment Survey, which revealed a significant increase in the one-year inflation expectation component, provided an additional boost to the US Dollar (USD). Following this report, the probability of the Federal Reserve (Fed) raising the policy rate one more time in December declined to 67% from nearly 75% earlier in the week. Read more …

GBP/USD clings to modest intraday gains above mid-1.2100s, lacks bullish conviction

The GBP/USD pair catches fresh bids on the first day of a new week and sticks to its intraday gains through the early part of the European session. Spot prices currently trade around the 1.2175-1.2180 region, up 0.30% for the day, and for now, seem to have snapped a two-day losing streak to a one-week low touched on Friday.

The US Dollar (USD) kicks off the new week on a softer note in the wake of the uncertainty over the Federal Reserve’s (Fed) future rate-hike path and turns out to be a key factor acting as a tailwind for the GBP/USD pair. The recent dovish remarks by several Fed officials suggested that the US central bank will leave interest rates unchanged for the second successive time in November. Read more…