GBP/USD edges lower to near 1.2680 ahead of US Fed interest rate decision
GBP/USD extends its losses for the second consecutive session on Wednesday, inching lower to near 1.2680 during the Asian session. The risk aversion sentiment is driving Investors towards the US Dollar (USD), which in turn, undermines the GBP/USD pair. US President Joe Biden has communicated that the United States will respond in a tiered approach to a specific situation following the deadly drone attack on US troops near the Jordan-Syria border.
The US Dollar Index (DXY) snaps a three-day losing streak, improving to near 103.60 despite the decline in the US Treasury yields. The 2-year and 10-year yields on US bond notes stand at 4.31% and 4.02%, respectively, by the press time. Moreover, The Federal Open Market Committee (FOMC) is widely expected to maintain its interest rate at 5.5% in its Wednesday meeting. Read more…
GBP/USD holds below the 1.2700 mark, investors await Fed rate decision
The GBP/USD pair holds below the 1.2700 mark during the early Asian session on Wednesday. Later on Wednesday, UK Nationwide Housing Prices for January will be due ahead of the Federal Open Market Committee (FOMC) monetary policy meeting. The major currently trades around 1.2695, unchanged for the day.
The FOMC is widely anticipated to keep interest rates unchanged in the range of 5.25–5.50% for the fourth straight time. At the Fed’s December meeting, Fed officials expected three rate cuts in 2024. However, the meeting minutes revealed that the future of monetary policy remains uncertain. According to CME Group’s FedWatch tool, traders have priced in 50% odds of rate cuts at the next meeting in March. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-declines-on-market-caution-due-to-the-middle-east-tension-202401310519