GBP/USD Weekly Forecast: Pound Sterling to focus on Fed-BoE policy divergence
The Pound Sterling (GBP) stretched its corrective downside from yearly highs against the US Dollar (USD), sending GBP/USD back under 1.2900 – the lowest level in over a week.
GBP/USD maintained its corrective downside mode during the past week, despite a broadly rangebound US Dollar. Divergent monetary policy outlooks between the US Federal Reserve (Fed) and the Bank of England (BoE) also failed to offer the much-needed lift to the Pound Sterling, as the sentiment around the higher-yielding currency was dented by resurfacing concerns over China’s economic slowdown. Read more…
GBP/USD holds positive ground above 1.2850, focus on Fed/BoE rate decision this week
The GBP/USD pair holds positive ground around 1.2885 during the Asian trading hours on Monday. The uptick of the pair is bolstered by the softer US Dollar (USD) amid the hope of an interest rate cut by the Federal Reserve (Fed) in September. The Fed and Bank of England (BoE) monetary policy meetings on Wednesday and Thursday will be closely watched events.
Most analysts and traders expect the Fed to leave the interest rate unchanged at its next meeting on Wednesday. The US Fed might signal this week that interest rate cuts are on the way, although it is widely anticipated to hold steady until its next rate decision in September. Investors are now seeing that the first rate cut will come by mid-September, pricing in 100% of the Fed rate cut by at least a quarter-percentage-point by then, according to data from the CME FedWatch Tool. Read more…
