GBP/USD trades in positive territory for the second consecutive day

GBP/USD Price Analysis: Oscillates in trading range above 1.2700 ahead of Fed, BoE rate decision

The GBP/USD pair remains confined in a narrow trading range above the 1.2700 mark during the early European trading hours on Tuesday. Investors prefer to wait on the sidelines ahead of key events from the Federal Reserve (Fed) and the Bank of England (BoE). At press time, GBP/USD is trading at 1.2708, down 0.02% on the day. 

The Fed is widely anticipated to hold benchmark interest rates steady at a 23-year high of 5.25–5.50% at its January meeting on Wednesday, after a lengthy effort to tame rampant inflation. Meanwhile, the BoE is expected to keep rates steady. Nonetheless, signs that the inflation crisis is easing off might convince the UK central bank to lower rates after all. Read more…

GBP/USD finds support above the 1.2700 mark, eyes on Fed, BoE rate decision

The GBP/USD pair remains well-supported above the 1.2700 mark during the early Asian session on Tuesday. Markets turn to a cautious mood ahead of the key two events from the Federal Open Market Committee (FOMC) and the Bank of England (BoE) on Wednesday and Thursday, respectively. GBP/USD currently trades around 1.2710, unchanged for the day. 

Inflation in the United States continues to surprise to the downside. The US Core Personal Consumption Expenditures Price Index (Core PCE), the Fed’s preferred gauge, fell to 2.9% in December, dropping below 3% for the first time since early 2021. The stage is prepared for the Fed to begin cutting interest rates in the coming months. At the January meeting, the FOMC will leave benchmark interest rates unchanged at a 23-year high of 5.25–5.5%, after a lengthy effort to tame rampant inflation. Read more…

GBP/USD faces pressure drops beneath 1.2700 ahead of Fed and BoE’s decisions

The GBP/USD is under pressure amid a busy week in the economic calendar, with central bank decisions on the line, led by the US Federal Reserve (Fed) and the Bank of England (BoE). The major is trading at 1.2681, down 0.17% after hitting a daily high of 1.2718.

The financial markets are in waiting mode, with a strong week ahead that will gain traction on Wednesday. The Fed is expected to keep rates unchanged, though most analysts are expecting Fed Chairman Jerome Powell’s press conference, who delivered ultra-dovish remarks in December. That sponsored a pushback by other Fed officials, and traders need to be aware there would be no projections or dot-plots revealed until the March meeting. Read more…