GBP/USD rises to near 1.2750 despite diminishing expectations for Fed rate cuts
GBP/USD advances for the second successive session, trading around 1.2740, near two-month highs, during the Asian hours on Monday. The appreciation in the GBP/USD could be attributed to the risk-on sentiment, despite diminishing expectations for Federal Reserve interest rate cuts. It is worth noting that the UK market will be closed due to the Spring Bank Holiday and the US market will be closed due to the Memorial Day bank holiday on Monday.
The University of Michigan’s 5-year Consumer Inflation Expectations for May on Friday. It eased slightly to 3.0%, below the forecasted 3.1%. Despite the upward revision of the Consumer Sentiment Index to 69.1 from a preliminary reading of 67.4, it still marked the lowest level in six months. These figures likely contributed to strengthening investors’ sentiment regarding potential rate cuts by the Federal Reserve. This has weakened the Greenback and underpinned the GBP/USD pair. Read more…
GBP/USD Weekly Forecast: Pound Sterling holds near two-month high ahead of US PCE week
The Pound Sterling (GBP) managed to eke out minor gains against the US Dollar (USD) this week after the GBP/USD pair touched the highest level in two months above 1.2750.
Having started the week on the front foot, the Pound Sterling struggled to resist the US Dollar resurgence, but GBP/USD eventually posted mild gains, extending the previous week’s rebound. Read more…
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