GBP/USD holds gains near 1.3500 amid BoE cautious stance
GBP/USD extends its gains for the fifth consecutive day, trading around 1.3480 during the Asian hours on Thursday. The pair may further appreciate as the Pound Sterling (GBP) receives support from the cautious remarks from the Bank of England (BoE) officials.
BoE policymaker Catherine Mann said Wednesday that the risk of “higher-for-longer” inflation is materializing, emphasizing concerns over persistent price pressures. Mann added that keeping rates on hold is appropriate for the current period. Read more…
GBP/USD tests 1.35 as Cable tilts upward
GBP/USD eased into a fourth straight bullish session, briefly tapping the 1.3500 handle before settling back to a sedate 0.27% gain for the day’s market sessions. Cable traders now head into an ueasy back half of the trading week, with a US government shutdown threatening the flow of high quality official labor and inflation data, as well as a notable lack of meaningful economic data releases on the UK side.
The US federal government is now in shutdown mode, with Congress unable to muscle a budget spending bill across the line before the regular start of the fiscal year on October 1, which occurs every single year and should come as no surprise to policymakers in Washington. Democrats have introduced two separate budget reconciliation bills this week, but House Republicans responded by skipping all budget meetings and remaining absent during two separate bill readings that would have provided a stopgap funding solution while a larger budget bill is considered. Read more…
GBP/USD surges to one-week high as weak ADP data and US government shutdown dent Dollar
The British Pound (GBP) advances sharply against the US Dollar (USD) on Wednesday, with GBP/USD climbing to a one-week high, reaching its strongest level since September 24, as the Greenback remains under broad pressure amid a weaker-than-expected ADP Employment Change report, the ongoing United States (US) government shutdown, and mounting bets on further Federal Reserve (Fed) interest rate cuts.
At the time of writing, GBP/USD is trading around 1.3512, extending its winning streak for a fourth day with a gain of 0.50%. Meanwhile, the US Dollar Index (DXY), which measures the Greenback’s performance against a basket of six major currencies, is hovering near 97.50, close to a one-week trough. Read more…
