The Pound looks set to start a new trading week at more-than seven-month highs against a United States Dollar broadly weakened by expectations that interest-rate cuts are surely coming.
The most recent US labor-market data saw GBP/USD gain, along with most other major currencies against the Dollar, as wagerelaxed a little and the unemployment rate edged higher. None of last week’s US action has seen rate-cut expectations brought forward from the markets’ current favorite month, June. However, it has seen those expectations become a little more certain, hence the Dollar’s broad weakness.
The UK’s inflation rate is trending lower and the country is no longer quite the alarming outlier it was here. However, at 4% the annual rate remains double the Bank of England’s target, and the overwhelming likelihood must be that US interest rates will come down before domestic ones, and possibly quite a long way before.
However, the UK has monthly Gross Domestic Product data on tap Wednesday, with employment numbers coming up the day before. Still, the Pound is unsurprisingly starting to look quite overbought and some consolidation would seem likely, even if that just puts GBP back into its prior range. The top of that range now offers support quite close to the market at 1.29148, with Feb 2’s intraday high of 1.27661 likely in focus below that.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
British Pound Weekly Forecast: Busier Data Week Might Be BruisingSterling remains relatively elevated despite recent US Dollar strength. This week may make life a bit tougher for Sterling bulls
Read more »
British Pound Weekly Forecast: No News Could Be Good News For BullsThe last few sessions have seen data showing the UK in recession, and some more hopeful signs that it might already be coming out. There’s less to look forward to this week, but that might not be bad news for Sterling.
Read more »
GBP/USD Weekly Forecast: Pound Sterling set to maintain its bearish potentialThe Pound Sterling (GBP) extended its losing streak against the US Dollar (USD) into a fourth straight week, keeping GBP/USD undermined near two-month troughs.
Read more »
GBP/USD Weekly Forecast: Pound Sterling could stage a comeback but will it last?The Pound Sterling (GBP) continued to remain in the back seat against the US Dollar (USD), as GBP/USD extended its bearish momentum into the fifth week in a row.
Read more »
GBP/USD Forecast: Pound Sterling looks to extend the upswingThe Pound Sterling (GBP) booked the first weekly gain against the US Dollar (USD), snapping a five-week bearish momentum.
Read more »
Gold Forecast: XAU/USD looks set for weekly gains despite lack of momentumGold (XAU/USD) fluctuated in a relatively narrow channel as it failed to benefit from the broad-based selling pressure surrounding the US Dollar (USD) this week.
Read more »