GBP/USD Forecast: Markets could ignore oversold conditions on a dovish BoE surprise
After rising above 1.2400 during the European trading hours on Wednesday, GBP/USD made a sharp U-turn and closed the day in negative territory. The pair extended its slide in the first half of the day on Thursday and touched its lowest level since early April below 1.2300.
The Federal Reserve left its policy rate unchanged at 5.25%-5.5% as forecast. The revised Summary of Projections confirmed that policymakers intend to hike the policy rate one more time in 2023. More importantly, the rate cut projection for 2024 got revised lower to 50 basis points (bps) from 100 bps. Hawkish dot plot provided a boost to the US Dollar (USD) and forced GBP/USD to stay under bearish pressure. Read more...
GBP/USD hits fresh six-month low below 1.2250 on BoE’s surprise hold
GBP/USD sees a fresh bout of selling pressure, hitting the lowest level since March this year, as the Pound Sterling feels the heat of the dovish Bank of England (BoE) interest rate decision.
Following the September meeting, the BoE decided to keep the benchmark interest rate steady at 5.25%, as against market expectations of a 25 basis points (bps) hike to 5.50%. However, industry experts and analysts had begun pricing chances of a status quo after the unexpected fall in the UK inflation data for August. Read more...
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