GBP/USD, EUR/GBP Outlooks – Sterling Weakens After Bank of England Commentary

Late Friday, BoE deputy governor Dave Ramsden said that he has now ‘become more confident in the evidence that risks to persistence in domestic inflation are receding, helped by improved dynamics.’ Ramsden added that relative to the February official forecasts risks to inflation are pointed to the downside, ‘with a scenario where inflation stays close to the 2% target over the whole forecast period at least as likely.’ The BoE forecast for a three-year period.

The latest UK rate cut probabilities have shifted forward with the first 25 basis point cut now expected at the August 1st central bank meeting., cable has now fallen below 1.2400 and seems set to test the 1.2313 and then the 1.2303 level. Below here, big figure support at 1.2200 and 1.2100 before 1.2039 comes into focus.

IG Retail data shows 71.54% of traders are net-long with the ratio of traders long to short at 2.51 to 1.The number of traders net-long is 0.56% lower than yesterday and 1.64% higher from last week, while the number of traders net-short is 2.07% higher than yesterday and 5.74% lower from last week.. The ECB is fully expected to cut rates by 25 basis points in June, and potentially again in July, leaving the ECB ahead of the BoE in the rate-cutting cycle.

We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.

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 Q2 Technical Outlook - GBP/USD, EUR/GBP, and GBP/JPY Technical OutlooksThe British Pound has started the process of re-pricing against a range of currencies after the Bank of England’s shift in tone
Source: DailyFX - 🏆 305. / 63 Read more »

British Pound Outlook & Sentiment Analysis: GBP/USD, GBP/JPY, EUR/GBPThis article examines retail sentiment on the British pound and positioning on three key FX pairs: GBP/USD, GBP/JPY and EUR/GBP. In the piece, we also investigate potential market outcomes guided by technical contrarian signals.
Source: DailyFX - 🏆 305. / 63 Read more »

British Pound Trade Setups & Technical Analysis: GBP/USD, EUR/GBP, GBP/JPYThis article offers a comprehensive examination of GBP/USD, EUR/GBP, and GBP/JPY from a technical perspective, analyzing chartist formations and market sentiment to forecast near-term price movements.
Source: DailyFX - 🏆 305. / 63 Read more »

GBP/USD Forecast: Further weakness looks granted for Pound SterlingThe Pound Sterling (GBP) accelerated its south run against the US Dollar (USD), knocking the GBP/USD pair to levels unseen since late November 2023.
Source: FXStreetNews - 🏆 14. / 72 Read more »

GBP/USD Weekly: Pound Sterling weakens further as Middle-East tensions, inflation lift US DollarThe Pound Sterling (GBP) resumed its downside against the US Dollar (USD), sending the GBP/USD pair to the lowest level in four months below 1.2500.
Source: FXStreetNews - 🏆 14. / 72 Read more »

Pound Sterling Update: GBP/USD Lifts Higher, GBP/CHF Treads CarefullySterling boasts a strong interest rate differential, but encouraging inflation data has undermined the currency somewhat. UK data is light but NFP ought to shake things up
Source: DailyFX - 🏆 305. / 63 Read more »