GBP/USD Forecast: Pound Sterling gains traction on improving risk mood
After touching a fresh multi-month low near 1.2350 on Thursday, GBP/USD staged a technical correction and closed in positive territory on Friday. Early Monday, the pair benefits from improving risk mood and continues to stretch higher toward 1.2500.
Following a bearish start to the year, Wall Street’s main indexes gathered bullish momentum and registered strong gains on Friday. Early Monday, US stock index futures trade in the green, making it hard for the US Dollar (USD) to hold its ground. Read more…
GBP/USD holds positive ground near 1.2450 on US Dollar bullish
The GBP/USD pair extends the recovery to near 1.2440 during the early European session on Monday. However, the potential upside seems limited amid the Federal Reserve’s (Fed) hawkish stance. Later on Monday, investors await the Fed’s Governor Lisa Cook speech for more cues about the US interest rate outlook this year.
The US central bank has cut the interest rates by one percentage point since September 2024 and signaled slower rate cuts this year, which supports the US Dollar (USD) broadly. Over the weekend, the Fed officials reinforced the view that the Fed will take a more cautious approach to cutting interest rates this year. Fed policymakers warned the fight against inflation is still with them while also highlighting their need to protect job market stability. Read more…
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