Pound Sterling Price News and Forecast: GBP finds support as appeal for risky assets slightly improves

GBP/USD Forecast: Sellers to retain control while 1.2750 stays intact as resistance

GBP/USD lost its traction and continued to push lower as the technical selling pressure ramped up after it broke below 1.2800 on Thursday. The pair fluctuates in a tight range below 1.2750 early Friday and the technical picture suggests that the bearish bias stays intact. Rising US Treasury bond yields provided a boost to the US Dollar (USD) on Thursday and caused GBP/USD to turn south.

After the US data showed that the Producer Price Index (PPI) rose 1.6% in February, at a much stronger pace than the 1% increase recorded in January, the benchmark 10-year US Treasury yield climbed to 4.3% as investors reassessed the timing of the Federal Reserve (Fed) policy pivot. Read more…

Pound Sterling finds support as appeal for risky assets slightly improves

The Pound Sterling (GBP) rebounds in Friday’s London session as market sentiment remains cautiously optimistic. The GBP/USD pair finds support after refreshing its weekly low near 1.2730. The US Dollar Index falls slightly after printing a fresh three-week high at 103.50, driven by increasing expectations that the Federal Reserve (Fed) could keep interest rates unchanged in the range of 5.25%-5.50% in the June policy meeting.

The Cable is broadly under pressure due to expectations that the Fed’s first rate cut, a move widely expected for markets as interest rates remain high for more than two years, could be pushed back further into the summer. This would align the time frame of the Fed’s rate cut decision with that of the Bank of England (BoE), which is expected to start reducing interest rates from the August policy meeting. Read more…