GBP/USD Weekly Forecast: Pound Sterling sellers look to retain control
Recording a third consecutive weekly decline, the Pound Sterling (GBP) reached its lowest level in a month against the US Dollar (USD), leaving GBP/USD to battle the 1.2700 threshold.
GBP/USD remained at the losing end, despite the persistent divergent monetary policy outlooks between the US Federal Reserve (Fed) and the Bank of England (BoE), as the pair witnessed more of a risk trade rather than a rate trade. Read more…
GBP/USD hovers around 1.2800 with aiming to extend gains due to risk-on mood
GBP/USD edges lower to near 1.2790 during the Asian session on Monday, which could be attributed to the downside of the US Dollar (USD). The Greenback faces challenges due to increased expectations of the Federal Reserve’s (Fed) reducing interest rates in September.
The CME’s FedWatch Tool shows a rise in the probability of a 50-basis point rate cut on September 18, increasing to 74.5% from 11.5% a week earlier. This shift is attributed to disappointing US jobs market data and a larger-than-expected contraction in factory activity, as reflected by the ISM Manufacturing PMI, released on Friday. Read more…
