GBP/USD maintains position above 1.3700 ahead of UK Q1 GDP data
GBP/USD inches higher ahead of the United Kingdom’s (UK) Gross Domestic Product for the first quarter, trading around 1.3720 during the Asian hours on Monday. The pair may gain ground as the US Dollar (USD) may further depreciate, as traders expect the Federal Reserve (Fed) to cut rates at the September meeting.
On Friday, data showed that US Personal Spending unexpectedly fell in May, the second decline this year. Meanwhile, US Personal income dropped by 0.4% in May, the largest decrease since September 2021. The week ahead welcomes a slew of key US employment figures, which may further offer fresh impetus on the US Federal Reserve’s (Fed) policy outlook. Read more…
GBP/USD Weekly Outlook: Pound Sterling awaits central bank talks in the NFP week
The Pound Sterling (GBP) recovery gathered steam against the US Dollar (USD), driving the GBP/USD pair to the highest level since October 2021, above 1.3750. It was a clear win-win case for the higher-yielding Pound Sterling as the US Dollar gradually lost its safe-haven appeal amid yo-yo-ing sentiment surrounding the US Federal Reserve’s policy outlook.
Though the GBP/USD pair saw a bearish opening gap on Monday, it was quickly reversed as buyers jumped back with a bang. The Pound Sterling was sold off at the weekly open as investors scurried for safety in the US Dollar after markets reacted negatively to the weekend news of the US military involvement in the Israel-Iran conflict. Read more…
