GBP/USD consolidates around 1.3330 as traders await Fed rate decision
The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow trading band, around the 1.3320-1.3325 region, during the Asian session. Spot prices, however, remain close to the highest level since October 22, touched last Thursday, with bulls awaiting a sustained strength and acceptance above the 100-day Simple Moving Average (SMA) before placing fresh bets.
The US Dollar (USD) languishes near its lowest level since late October amid bets that the Federal Reserve (Fed) will cut interest rates again this week, and turns out to be a key factor that continues to act as a tailwind for the GBP/USD pair. Traders, however, seem reluctant to place aggressive directional bets and opt to wait for more cues about the Fed’s future rate-cut path. Hence, the focus will remain glued to the updated economic projections and Fed Chair Jerome Powell’s comments during the post-meeting press conference. Read more…
GBP/USD Weekly Forecast: Pound Sterling extends rally as markets brace for Fed decision and UK GDP
The Pound Sterling (GBP) recovery gathered steam against the US Dollar (USD), driving GBP/USD to fresh five-week highs above the 1.3350 level. GBP/USD witnessed the extension of the UK Budget-inspired relief rally amid a sustained bearish sentiment around the US Dollar, which bolstered its recovery momentum.
Last week, British Chancellor of the Exchequer Rachel Reeves announced a tax hike amounting to an annual £26 billion to fund the fiscal hole. The UK’s Office for Budget Responsibility (OBR) raised the country’s GDP forecast for 2025 to 1.5% from the previous forecast of 1%. Pound Sterling, however, capitalized on the absence of any major tax burden on households, as the Labour Party stuck to its self-imposed rule of avoiding fresh borrowings for day-to-day spending, as explained by FXStreet’s Analyst Sagar Dua. Read more…
