GBP/USD Price Forecast: Pound Sterling remains capped by 50-day SMA
GBP/USD is battling 1.3200 in the early European trading hours on Tuesday, consolidating the previous sharp retracement from five-week highs of 1.3276.
Growing expectations that the Bank of England (BoE) will lower the benchmark interest rate at the December 18 monetary policy meeting keep the bearish pressures intact on the Pound Sterling (GBP) amid the latest upswing in the US Dollar (USD) across the board. Read more…
GBP/USD slides as UK budget strains and US labor data weigh
GBP/USD soured on Monday, starting off the December trading window declining around one-quarter of one percent, pushing back down from a key technical confluence region that will likely inspire further short selling behind the Pound Sterling (GBP) unless global flows into the US Dollar (USD) reverse course.
Chancellor of the Exchequer Rachel Reeves has come under fresh fire regarding the state of the UK’s government budget. Chancellor Reeves stands accused of grossly misreprenting the true state of the UK’s finances. Chancellor Reeves has continued to advocate for “unavoidable increases” in budgetary taxes, despite the Office for Budget Responsibility (OBR) noting recently that the current government is facing an unexpected surplus, rather than the forecast deficit, thanks to stronger-than-expected wage growth and higher-than-expected tax revenues offsetting declines in productivity. Read more…
GBP/USD holds higher as rising December cut bets fuel Sterling demand
The GBP/USD pair post modest gains, rising over 0.20% on Monday as investors grow confident that the Federal Reserve (Fed) might cut rates in the next week’s meeting. Traders priced in a possible nomination of the White House Economic Adviser Kevin Hassett to succeed Chair Jerome Powell at the Fed. At the time of writing, the pair trades at 1.3250, after hitting a daily low of 1.3205.
Data from the US showed that business activity contracted for the ninth straight month in November, according to the Institute for Supply Management (ISM). The ISM Manufacturing PMI dipped from 48.7 in October to 48.2 last month. The sub-component of employment dropped from 46 to 44, while Prices Paid jumped to 58.5 from 58, below forecasts of 59.5. Read more…
