Pound Sterling Price News and Forecast: GBP/USD bullish potential limited, with UK inflation, Ukraine in spotlight
|GBP/USD Weekly Forecast: Bullish potential limited, with UK inflation, Ukraine in spotlight
Optimism over a probable truce between Russia and Ukraine offered a sigh of relief to risk-sensitive currencies such as the British pound. GBP/USD staged an impressive comeback, as the US dollar failed to capitalize on the hawkish Federal Reserve (Fed) outlook. Cable booked the first weekly gain in four, despite a cautious Bank of England (BOE) rate hike. Attention turns towards the next week’s UK inflation data and US Durable Goods data while geopolitical developments concerning eastern Europe will be closely followed as well. Read more...
GBP/USD Forecast: Pound recovers modestly, 1.3100 still under threat
GBP/USD has staged a recovery after dipping below 1.3100 on Thursday but has lost its momentum early Friday. The negative shift witnessed in risk mood could continue to weigh on the pair ahead of the weekend and drag it toward 1.3100 support. On Thursday, the Bank of England (BOE) announced that it hiked its policy rate by 25 basis points to 0.75% as expected. Deputy Governor Jon Cunliffe, however, voted to keep rates on hold and didn't allow the British pound to capitalize on the rate increase. Additionally, the policy statement showed that the Russia-Ukraine crisis had "increased the uncertainty around the economic outlook significantly" and the bank's cautious tone further weighed on the GBP. Read more...
GBP/USD’s strong rebound from 1.3110 extends to 1.3185
The GBP/USD has rallied more than 0.5% in the last few hours, to erase the European trading session’s decline. In absence of significant macroeconomic releases, positions squaring moves ahead of the London closing bell might be behind the pound’s recovery. The pound had been hitherto trading lower, weighed by the Bank of England’s dovish statement, after releasing its monetary policy decision on Thursday, while the sourer market mood, as hopes of progress in the Russia – Ukraine peace talks start to fade have favored the safe-haven USD, thus increasing negative pressure on the GBP. Read more...
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