Pound Sterling Price News and Forecast: GBP recovers on improved market mood
|GBP/USD Forecast: Buyers are struggling to defend 1.2700
GBP/USD lost its traction and dropped below 1.2700 in the early trading hours of the European session on Friday. Although the near-term technical outlook is yet to highlight a build-up of bearish momentum, buyers could remain discouraged unless the pair manages to reclaim 1.2700.
Upbeat macroeconomic data releases from the US provided a boost to the US Dollar (USD) during the American session on Thursday. The Bureau of Economic Analysis (BEA) reported that the US' Gross Domestic Product grew at an annual rate of 3.3% in the fourth quarter (first estimate). This reading surpassed the market expectation for a 2% expansion and helped the USD outperform its rivals. Read more...
Pound Sterling recovers on improved market mood, US Core PCE Inflation in focus
The Pound Sterling (GBP) bounces back strongly as focus shifts to the interest rate decisions by the Bank of England (BoE) and the Federal Reserve (Fed) next week. Both central banks are widely anticipated to keep the monetary policy unchanged for the fourth straight time but guidance on interest rates for the entirety of 2024 will be keenly watched.
BoE policymakers are expected to refrain from rate-cut discussions as the United Kingdom economy is still experiencing significantly higher inflationary pressures than the US. There, however, policymakers could provide some cues about future interest rate-cuts. The Summary of Economic Projections (SEP) published after the last Fed meeting showed members on average predicting three rate cuts in 2024. Read more...
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