GBP/USD Forecast: Pound Sterling stabilizes but struggles to gather recovery momentum
GBP/USD rose slightly above 1.3000 during the European trading hours on Tuesday but failed to stabilize there, closing the day virtually unchanged. The pair fluctuates in a narrow band below 1.3000 in the European morning on Wednesday, while the technical outlook shows no signs of a recovery.
Tuesday’s empty economic calendar allowed the risk-perception to influence GBP/USD’s action on Tuesday. Wall Street’s main indexes struggled to gain traction and ended the day with small changes, allowing the US Dollar (USD) to stay resilient against its rivals. Read more…
GBP/USD tests 1.3000, faces headwinds due to dovish sentiment surrounding the BoE
The GBP/USD pair edges higher toward 1.3000 during Asian trading on Wednesday. However, the Pound Sterling (GBP) faced headwinds due to declining consumer and producer inflation figures, coupled with weak labor market data in the United Kingdom (UK). These factors are fueling expectations that the Bank of England (BoE) may implement a 25 basis point rate cut in November, followed by another quarter-point cut in December.
On Tuesday, BoE Governor Andrew Bailey highlighted the need for the UK central bank to enhance its ability to monitor developments in the less transparent non-banking system. Speaking at a Bloomberg event in New York, Bailey noted, “We are approaching a point where we need to pivot from rule-making to surveillance” to better track financial activities outside the traditional banking sector. Read more…
