GBP/USD trades on a softer note near 1.3310

GBP/USD Weekly Forecast: Pound Sterling stays hopeful, eyeing PMIs, Powell and PCE

The Pound Sterling (GBP) extended its hold against the US Dollar (USD) after the previous week’s resurgence, as the GBP/USD pair tapped the highest level since March 2022 above 1.3300.The bullish potential remained intact for the GBP/USD pair, as the Pound Sterling capitalized on the monetary policy divergence between the Bank of England (BoE) and the US Federal Reserve (Fed), underscored in the central banks’ bonanza week. Read more…

GBP/USD weakens below 1.3350, UK/US PMI data in focus

The GBP/USD pair edges lower to 1.3310, snapping the three-day winning streak during the early Asian session on Monday. The modest recovery of the US Dollar (USD) weighs on the major pair. Investors will focus on the flash reading of the UK and US Purchasing Managers Index (PMI) data, which are due later on Monday. 

The US Federal Reserve (Fed) lowered its key overnight borrowing rate by a half percentage point last week, the first interest rate cut since the early days of the Covid pandemic. The Fed statement noted, “The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.” Read more…