GBP/USD Weekly Forecast: Pound Sterling looks to Fed and BoE verdicts for fresh direction
The Pound Sterling (GBP) gave into the US Dollar (USD) resurgence, as GBP/USD registered a sharp correction from seven-month highs of 1.2894 reached a week ago.
The US Dollar jumped back on the bids, mainly underpinned by less dovish US Federal Reserve (Fed) policy expectations. Traders pared bets for a June interest rate cut by the Fed following the release of the inflation data from the United States (US). Read more…
GBP/USD consolidates around 1.2730 as markets adopt caution ahead of Fed decision
GBP/USD appears to reverse its decline initiated on Thursday, hovering around 1.2730 during the Asian session on Monday. However, the pair faced setbacks amidst market caution preceding the US Federal Reserve’s interest rate decision on Wednesday.
The US Dollar Index (DXY) experienced a surge in momentum, buoyed by the rise in US Treasury yields on Friday. This uptick in yields was fueled by a hawkish sentiment surrounding the Federal Reserve, which was anticipated to maintain its heightened interest rates amidst recent inflationary pressures. However, a subsequent retreat in US yields exerted pressure on the US Dollar (USD), at the time of writing. Read more…
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