Pound Sterling Price News and Forecast: GBP/USD struggles to preserve bullish momentum
|GBP/USD Forecast: Pound Sterling struggles to preserve bullish momentum
GBP/USD gathered bullish momentum and reached its strongest level since mid-March above 1.2800 on Monday. The pair, however, lost its traction and declined toward 1.2750 in the European session on Tuesday.
The US Dollar (USD) came under heavy selling pressure in the American session on Monday after the data showed that the ISM Manufacturing PMI dropped to 48.7 in May from 49.2 in April. This reading showed that the economic activity in the manufacturing sector continued to contract at a fastening pace. Moreover, the inflation component of the PMI survey, the Prices Paid Index, fell to 57 from 60.9. Read more...
Pound Sterling slumps against US Dollar despite firmer Fed rate-cut prospects
The Pound Sterling (GBP) corrects from the round-level resistance of 1.2800 against the US Dollar in Tuesday’s London session but remains broadly firm. The GBP/USD pair posted a fresh two-month high earlier in the day due to a sharp decline in the US Dollar (USD), which was triggered by growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.
Market expectations for the Fed returning to policy normalisation strengthened after the weaker-than-expected United States (US) ISM Manufacturing PMI report for May indicated that the growth outlook of the world’s largest economy appears to be losing momentum. According to the PMI report, US manufacturing activity contracted for a second straight month as “demand remains elusive as companies demonstrate an unwillingness to invest due to current monetary policy and other conditions.” Read more...
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