GBP/USD Forecast: Pound Sterling sellers refuse to give in
GBP/USD trades in a tight channel at around 1.2900 in the European morning on Friday after closing deep in the red on Thursday. The pair remains technically bearish as investors await October labor market data from the US.
Although mixed macroeconomic data releases from the US made it difficult for the US Dollar (USD) to gather strength, GBP/USD struggled to find a foothold as safe-haven flows dominated the action in financial markets on Thursday. Read more…
GBP/USD Forecast: Pound Sterling struggles to attract bulls
GBP/USD lost its traction and closed in negative territory on Wednesday. The pair trades marginally higher early Thursday but remains below 1.3000. Rising United Kingdom (UK) gilt yields following the announcement of the UK Autumn Budget help Pound Sterling stay resilient against its rivals in the European morning session. The 2-year gilt yield rose to its highest level since mid-July and the 20-year yield reached a one-year top above 4.8% as markets opened on Thursday.
Assessing how the UK fiscal policy could influence the Bank of England’s (BoE) policy outlook, Danske Bank analysts said in a report published on Wednesday: “We have long argued that a more expansionary budget could trim markets’ expectation for a December cut, which today’s events have provided support for.” Read more…
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