Pound Sterling Price News and Forecast: GBP/USD lacks firm intraday direction on Wednesday
|GBP/USD flat lines below 1.2700, looks to US data/FOMC minutes for some impetus
The GBP/USD pair struggles to build on the overnight goodish rebound from the 1.2615 area, or a multi-day low and oscillates in a narrow band during the Asian session on Wednesday. Spot prices remain confined in a familiar range held over the past two weeks or so and currently trade just below the 1.2700 round-figure mark.
Against the backdrop of the Bank of England's (BoE) dovish pause in June, which lifted bets for a rate cut in August, the anxiety surrounding the upcoming UK general elections on Thursday acts as a headwind for the British Pound (GBP). The US Dollar (USD), on the other hand, struggles to attract any meaningful buyers in the wake of Fed Chair Jerome Powell's dovish-sounding remarks on Tuesday, saying that the US economy has made significant progress on inflation and is back on the disinflationary path. Read more...
GBP/USD extends upside above 1.2650, eyes on US data/FOMC Minutes
The GBP/USD pair trades in positive territory for the fifth consecutive day around 1.2688 on Wednesday during the early Asian session. The USD Index (DXY) declines below the 106.00 hurdle, which supports the major pair. Investors await the US June ADP Employment Change, ISM Services PMI, along with the FOMC Minutes, which are due later on Wednesday.
On Tuesday, US Federal Reserve Chair Jerome Powell stated that US inflation is cooling again after higher readings earlier this year. Still, he wants to see more evidence before being confident enough to start cutting interest rates. Powell added that the US economy and job market remain strong, which means the central bank can take its time in deciding when rate cuts are appropriate. Read more...
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