Pound Sterling Price News and Forecast: GBP/USD weakens as BoE rate-cut bets rise ahead of policy meeting
|Pound Sterling weakens as BoE rate-cut bets rise ahead of policy meeting
The Pound Sterling (GBP) exhibits a weak performance against its major peers, except the Japanese Yen, on Tuesday. The British currency weakens as market speculation for the Bank of England (BoE) to begin reducing interest rates from the August meeting, which will be announced on Thursday, has improved further. Trades see a little over 58% chance that the BoE will cut its key borrowing rates by 25 basis points (bps) to 5%, Reuters reported.
Investors expect that the BoE’ rate-cut decision will be a tough call, with 5-4 vote split as inflation in the service sector is significantly higher than where it needs to be to boost policymakers’ confidence for rate cuts. United Kingdom’s (UK) annual service inflation remained higher at 5.7% in June than bank’s forecast of 5.1%. Read more...
GBP/USD Forecast: Pound Sterling remains fragile despite recovering from multi-week lows
GBP/USD touched its weakest level in nearly three weeks below 1.2810 on Monday but managed to retrace its decline to end the day flat. The pair holds relatively stable slightly above 1.2850 in the European session but the technical outlook is yet to point to an extended recovery.
GBP/USD started the new week on the back foot as the US Dollar (USD) benefited from the risk-averse atmosphere. Investors, however, seem to remain reluctant to commit to a directional move in the pair ahead of the Federal Reserve and the Bank of England's monetary policy announcements on Wednesday and Thursday, respectively. Read more...
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