GBP/USD Weekly Forecast: Pound Sterling slides as Dollar strengthens ahead of Fed decision
The Pound Sterling (GBP) faced rejection once again on its way to the 1.3500 level when compared with the US Dollar (USD), sending GBP/USD back toward the 1.3300 mark. GBP/USD faced a double whammy and returned to the red, reversing a major portion of the previous week’s recovery.
The pair felt the heat of the USD resurgence as a safe-haven asset, while increased dovish bets surrounding the Bank of England’s (BoE) interest rate outlook added to its downside. Growing geopolitical and trade tensions dented risk appetite at the start of the week, lifting the haven demand for the Greenback at the expense of the higher-yielding Pound Sterling. Read more…
GBP/USD trades with positive bias above 1.3300 amid softer USD; upside seems limited
The GBP/USD pair kicks off the new week on a slightly positive note and holds steady above the 1.3300 round figure during the Asian session, though it lacks follow-through buying. Moreover, the fundamental backdrop suggests that the path of least resistance for spot prices remains to the downside and backs the case for an extension of a six-day-old downtrend.
The British Pound (GBP) continues with its relative underperformance amid firming expectations for further easing by the Bank of England (BoE), which, in turn, is seen acting as a headwind for the GBP/USD pair. Traders are pricing in a 40% chance of a 25-basis-point (bps) rate reduction by the BoE in November, and 65 bps of cuts by the year-end. The bets were reaffirmed by unexpectedly steady inflation data released last week and some signs of cooling in the UK jobs market. Read more…