GBP/USD Forecast: Pound Sterling struggles to gather recovery momentum
GBP/USD failed to make a decisive move in either direction and closed the day virtually unchanged on Thursday. The pair holds steady above 1.2100 early Friday but it remains below key technical levels that could limit the upside.
Although the risk-averse market atmosphere helped the US Dollar (USD) stay resilient against its rivals on Thursday, a more-than-2% decline seen in the benchmark 10-year US Treasury bond yield made it difficult for the currency to gather further strength. Read more…
GBP/USD holds steady above 1.2100 mark, looks to US PCE Price Index for fresh impetus
The GBP/USD pair struggles to capitalize on the previous day’s goodish rebound from the 1.2070 area, or over a three-week low and seesaws between tepid gains/minor losses during the Asian session on Friday. Spot prices, meanwhile, manage to hold comfortably above the 1.2100 round-figure mark and remain at the mercy of the US Dollar (USD) price dynamics.
Signs of easing inflationary pressures in the United States (US), to a larger extent, overshadowed the upbeat GDP print, showing that the economy grew at its fastest pace since 2021 and led to the overnight pullback in the US Treasury bond yields. This, in turn, keeps the USD bulls on the defensive and is seen lending some support to the GBP/USD pair. Any meaningful USD downfall, however, still seems elusive amid growing acceptance that the Federal Reserve (Fed) will stick to its hawkish stance. Read more…
Pound Sterling remains on backfoot amid dismal market mood
The Pound Sterling (GBP) faces barricades while extending upside above the crucial resistance at 1.2140 as strength in the US Dollar has squeezed the risk appetite of investors. The GBP/USD pair may fall back to seven-month lows as the United Kingdom economy is facing the wrath of higher interest rates by the Bank of England (BoE) amid stubborn consumer inflation.
Business activities, labor demand, and sales at retail stores have dropped significantly as high inflation has squeezed household budgets. The inflation risks remain persistent due to robust wage growth, which has cast doubts among market participants about UK Prime Minister Rishi Sunak fulfilling his promise of halving headline inflation to 5.4% by the year-end. Read more…
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