GBP/USD Price Forecast: Holds Descending Triangle breakout
The GBP/USD pair trades marginally lower at around 1.3500 during the European trading session on Tuesday. The Cable edges down as the US Dollar (USD) ticks up; however, financial markets doubt the slight recovery move seen this week, with traders paring hawkish Federal Reserve (Fed) bets for the September policy meeting due to weak United States (US) Nonfarm Payrolls (NFP) data for July.
Economists at ING describe the July US jobs report as “surprisingly weak,” noting that nonfarm payrolls “fell 23k” on the month. They highlight that the softness was compounded by “103K of downward revisions to the past two months’ data,” which has dragged the “3M average” gain in payrolls down to just “20,000.” ING argues that this combination of an outright monthly decline and sizeable revisions paints a notably softer picture of underlying labour market momentum. Read more…
British Pound consolidates around 1.3500 vs USD; looks to US CPI, UK GDP for fresh impetus
The GBP/USD pair seesaws between tepid gains and minor losses through the early European session on Tuesday, though it remains close to the highest level since July 16 set the previous day. Spot prices currently trade around the 1.3500 psychological mark, nearly unchanged for the day, as traders opt to wait for this week’s important macro releases from the US and the UK.
The crucial US Consumer Price Index (CPI) report will be released on Wednesday, followed by the preliminary UK Q2 GDP figures on Thursday and the US Producer Price Index (PPI). In the meantime, the US-Iran standoff, along with bets that the US Federal Reserve (Fed) will adopt a more hawkish stance amid inflation risks stemming from volatile oil prices, supports the safe-haven US Dollar (USD) and caps GBP/USD. Read more…
British Pound clings to gains against US Dollar, US CPI in focus
The British Pound (GBP) holds onto two-day gains marginally at around 1.3500 against the US Dollar (USD) during the Asian trading session on Tuesday. The GBP/USD pair remains firm as the British Pound outperforms despite financial markets pricing out the possibility of an interest rate hike by the Bank of England (BoE) in the near term.
Strategists at Rabobank point out that “for the UK, the market is currently pricing in a reduced expectation of a rate hike by the end of the year. Read more…
