GBP/USD holds ground above the 1.2600 mark on softer US Dollar
The GBP/USD pair trades on a stronger note amid the US Dollar's (USD) weakness during the early Asian trading hours on Wednesday. The rebound of the major pair is supported by the softer Greenback and lower US Treasury bond yields. At press time, GBP/USD is trading at 1.2608, adding 0.06% on the day.
The expectation of interest rate cuts from the Federal Reserve (Fed) has waned as US economic data came in better than expected. Additionally, Fed Chair Jerome Powell said on Sunday that it would not be appropriate to cut rates until there was greater confidence that inflation is moving to 2%. The markets are now pricing in a 15% possibility of rate cuts in March and priced in 50% odds of rate cuts in the May meeting. This, in turn, lifts the US Dollar (USD) and acts as a headwind for GBP/USD. Read more...
GBP/USD climbs on falling US yields, upbeat market mood
The GBP/USD recovered some ground against the US dollar on Tuesday during the mid-North American session amid a risk-on impulse and falling US Treasury bond yields. Investors seem confident that most global central banks will ease monetary policy, even though Fed Chair Jerome Powell pushed back against easing in March. At the time of writing, the pair exchanges hands at 1.2594.
Despite staging a comeback, the Pound Sterling remains pressured after the US Federal Reserve Chair Jerome Powell's remarks suggest the Fed is in no rush to cut rates. That strong US ISM Manufacturing and Non-Manufacturing PMI posting solid data and an outstanding January Nonfarm Payrolls report sponsored a leg-up in the Greenback. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD hovers around 1.2750 on UK election day
GBP/USD extends its sideways grind near 1.2750 in the American session on Thursday. A broadly softer US Dollar keeps the pair afloat but traders refrain from placing fresh bets on the Pound Sterling while awaiting exit polls of UK election.
EUR/USD holds steady near 1.0800 after ECB Accounts
EUR/USD continues to fluctuate in a tight range near 1.0800 in the second half of the day on Thursday. The accounts of the ECB's June policy meeting fail to influence the Euro's valuation as trading conditions remain thin, with US markets remaining closed on Independence Day.
Gold consolidates weekly gains ahead of US NFP
Gold struggles to build on Wednesday's gains and trades in a narrow band above $2,350. Sustained US Dollar weakness alongside sluggish US Treasury bond yields help XAU/USD limit its losses ahead of Friday's key June jobs report from the US.
Crypto Today: Bitcoin crumbles under German government transfers, Ethereum and Ripple erase gains
Bitcoin trades below $57,100 on Thursday as German government transfers continue, $76 million BTC moved to exchanges. Ethereum trades near $3,100 ahead of the upcoming SEC decision on the Spot Ethereum ETF.
Investors await NFP to validate their Fed rate cut bets
Investors expect two rate cuts, even though Fed signals one. Recent data corroborates investors’ take. Nonfarm Payrolls waited for more confirmation.