GBP/USD holds ground above the 1.2600 mark on softer US Dollar
The GBP/USD pair trades on a stronger note amid the US Dollar’s (USD) weakness during the early Asian trading hours on Wednesday. The rebound of the major pair is supported by the softer Greenback and lower US Treasury bond yields. At press time, GBP/USD is trading at 1.2608, adding 0.06% on the day.
The expectation of interest rate cuts from the Federal Reserve (Fed) has waned as US economic data came in better than expected. Additionally, Fed Chair Jerome Powell said on Sunday that it would not be appropriate to cut rates until there was greater confidence that inflation is moving to 2%. The markets are now pricing in a 15% possibility of rate cuts in March and priced in 50% odds of rate cuts in the May meeting. This, in turn, lifts the US Dollar (USD) and acts as a headwind for GBP/USD. Read more…
GBP/USD climbs on falling US yields, upbeat market mood
The GBP/USD recovered some ground against the US dollar on Tuesday during the mid-North American session amid a risk-on impulse and falling US Treasury bond yields. Investors seem confident that most global central banks will ease monetary policy, even though Fed Chair Jerome Powell pushed back against easing in March. At the time of writing, the pair exchanges hands at 1.2594.
Despite staging a comeback, the Pound Sterling remains pressured after the US Federal Reserve Chair Jerome Powell’s remarks suggest the Fed is in no rush to cut rates. That strong US ISM Manufacturing and Non-Manufacturing PMI posting solid data and an outstanding January Nonfarm Payrolls report sponsored a leg-up in the Greenback. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-gains-traction-for-the-second-consecutive-day-around-12608-202402070518