Pound Sterling slumps to near 1.2700 on global risk-aversion
The Pound Sterling (GBP) remains on the back foot against its major peers but performs strongly against the Japanese Yen (JPY) and the Swiss Franc (CHF), as both faced profit-booking on Tuesday. The British currency continues to face pressure from widespread risk aversion. Apart from fears of a US slowdown, a likely all-out war between Israel and Iran has also kept risk sentiment on tenterhooks. Fears of escalating Middle East conflicts were prompted after Iran-backed Hezbollah said it launched dozens of missiles on Israel on Saturday in retaliation to the assassination of Hamas leader Ismail Haniyeh by an Israeli airstrike in Tehran.
On the domestic front, the Pound Sterling will be guided by market speculation for the Bank of England (BoE) amid an absence of top-tier events. Market participants expect that the BoE could also deliver subsequent rate cuts to fight against the ripple effects of the US slowdown. Read more…
GBP/USD Forecast: Pound Sterling declines toward key support area
GBP/USD failed to benefit from the broad-based selling pressure surrounding the US Dollar (USD) on Monday and closed the day in negative territory. The pair stays on the back foot early Tuesday and declines toward 1.2700.
Escalating geopolitical tensions triggered an intense flight to safety at the beginning of the week. The broad market selloff weighed heavily on the USD but the risk-sensitive Pound Sterling failed to find demand in the risk-averse market environment. Read more…
