Pound Sterling Price News and Forecast: GBP/USD attracts some dip-buyers
|GBP/USD trims a part of intraday losses, down a little below 1.3200 ahead of BoE
The GBP/USD pair finds some support near the 1.3150 region on Thursday and for now, seems to have stalled its retracement slide from the 1.3300 neighborhood, or the highest level since March 2022 touched the previous day. Spot prices climb closer to the 1.3200 mark during the Asian session, albeit lack follow-through amid some follow-through US Dollar (USD) buying and currently trade with modest intraday losses.
The US Federal Reserve (Fed) decided to kick-start the policy-easing cycle and lowered borrowing costs by 50 basis points (bps) on Wednesday, though cooled hopes for oversized rate cuts going forward. Furthermore, Fed policymakers don't see inflation returning to the 2% target before 2026, triggering a sharp recovery in the US Treasury bond yields. This, in turn, lifts the USD Index (DXY), which tracks the Greenback against a basket of currencies, to a one-week high and turns out to be a key factor exerting some downward pressure on the GBP/USD pair. Read more...
GBP/USD holds steady as BoE rate call looms ahead
GBP/USD hit a fresh 30-month high on Wednesday, pushed within inches of the 1.3300 handle after the US Federal Reserve (Fed) trimmed interest rates by a jumbo 50 bps and chalking in the US central bank’s first rate cut in over four years. The UK’s Bank of England (BoE) is set to deliver its own September rate call early Thursday, but no moves are expected from the BoE after already cutting reference rates earlier this summer.
The BoE is expected to hold interest rates steady at 5.0% in a seven-to-two vote. The BoE’s Monetary Policy Committee (MPC) previously voted five-to-four to reduce interest rates by 25 bps from 5.25%, and markets are expecting the BoE to hold steady for this meeting. Read more...
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