GBP/USD treads water below 1.2700 as the Dollar trims losses

GBP/USD trades higher around 1.2650 on hawkish BoE, weaker US Dollar

GBP/USD recovers its recent losses registered in the previous session, trading higher around 1.2650 during the Asian session on Friday. The GBP/USD pair strengthened on weaker US Dollar (USD) amid downbeat US Treasury yields. Additionally, Bank of England (BoE) officials have been sending hawkish signals throughout the week, providing a boost to the Pound Sterling (GBP). There is an estimate that the BoE will maintain higher interest rates for an extended period, especially considering that inflation is currently more than twice the central bank’s target.

Interest rate-setter Megan Greene from the Bank of England expressed concerns about persistently high inflation, indicating that interest rates might need to remain elevated for an extended duration. This perspective contrasts with some recent data suggesting a potential downturn in the economy. Read more…

GBP/USD treads water below 1.2700 as the Dollar trims losses

Sterling’s rebound seen after the better-than-expected manufacturing data has been short-lived. Bulls have been capped at 1.2675, which leaves the pair in no man’s land with the near-term upside trend losing steam.

UK S&P  Global/CIPS Manufacturing PMI improved to 47.2 in November, from 46.7 in October, beyond expectations of a 46.6 reading. Earlier today Nationwide revealed that housing prices increased against expectations in November. Read more…