GBP/USD holds above 1.2800 amid the USD weakness

GBP/USD Forecast: Pound Sterling bulls could turn hesitant if 1.2800 stays intact

Fuelled by the broad-based selling pressure surrounding the US Dollar (USD), GBP/USD gained traction and advanced beyond 1.2800 for the first time since August. Ahead of the mid-tier macroeconomic data releases from the US, the pair staged a technical correction early Thursday.

The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies this week. Pound Sterling was the strongest against the US Dollar. Read more…

GBP/USD holds above 1.2800 amid the USD weakness, focus on US Jobless Claims

The GBP/USD pair extends its upside above the 1.2800 mark during the Asian trading hours on Thursday. The decline in inflationary pressure in the US economy and dovish comments from the Federal Reserve (Fed) have dragged the US Dollar (USD) lower and lent some support to GBP/USD. At press time, the major pair is trading at 1.2810, up 0.09% on the day.

The Greenback remains under pressure as investors anticipate that the Federal Reserve (Fed) could soon cut interest rates. Markets are now pricing in over 88% of a rate cut starting in March 2024, according to the CME Fedwatch tool, with more than 150 basis points (bps) of cuts priced in for next year. Read more…

Pound Sterling clings to gains amid improved market sentiment

The Pound Sterling (GBP) prints a fresh four-month high as investors hope that the Bank of England (BoE) will maintain a restrictive monetary policy stance for a longer period than other Group of Seven economies. The GBP/USD pair has continued its four-day winning streak as the market mood is quite cheerful due to early rate cut expectations from the Federal Reserve (Fed).

BoE policymakers are expected to face enormous difficulties as price pressures in the United Kingdom are high and the economy is on the verge of a technical recession due to deteriorating demand in domestic and overseas markets. The BoE could be forced to turn dovish due to economic shrinkage. Read more…