GBP/USD Price Forecast: Could climb further towards 1.3500 amid a weaker USD
The GBP/USD pair gains positive traction for the second successive day on Thursday and recovers further from its lowest level since early August, around the 1.3250-1.3245 region touched earlier this week. The US Dollar (USD) selling remains unabated and turns out to be a key factor acting as a tailwind for the currency pair, which largely shrugged off rather unimpressive UK macro releases.
The Office for National Statistics (ONS) reported that the British economy expanded by a lackluster 0.1% in August. This was in line with consensus estimates, though it was offset by a downward revision of the previous month’s reading, which showed that the economy contracted by 0.1%. Meanwhile, the UK Industrial Production rose by 0.4% in August following a 0.4% fall in the previous month. Read more…
British Pound braces for further losses
The British pound remains under sustained pressure, driven by a weakening domestic economy and receding inflation concerns. Recent UK macroeconomic data indicate stagnation in the service sector and a continued decline in consumer spending.
At the same time, slowing wage growth is giving the Bank of England greater flexibility to adopt a more dovish stance. Market expectations now point to a high likelihood of a rate cut at one of the bank’s forthcoming meetings. Read more…
