GBP/USD Weekly Forecast: Pound Sterling struggles as low inflation propels BoE rate cut bets
The Pound Sterling (GBP) fell for the third consecutive week against the US Dollar (USD), as the GBP/USD pair tested levels below the 1.3000 round level for the first time since mid-August before staging a late recovery.
Markets turned more dovish on the Bank of England’s (BoE) monetary policy outlook while sealing in a smaller interest-rate cut by the US Federal Reserve (Fed), thus strengthening the US Dollar’s advance at the expense of the Pound Sterling. Read more...
GBP/USD consolidates around mid-1.3000s, seems vulnerable amid bullish USD
The GBP/USD pair struggles to capitalize on modest recovery gains registered over the past two days and oscillates in a narrow range, around the 1.3050-1.3045 region during the Asian session on Monday. Spot prices remain well within striking distance of a one-month low touched last Thursday and seem vulnerable to prolong the recent retracement slide from the 1.3435 area, or the highest level since March 2022.
A surprise fall in the UK Consumer Price Index (CPI) to the lowest level since April 2021 and below the Bank of England's (BoE) 2% target lifted bets for a 25 basis point (bps) interest rate cut at the November 7 meeting. Furthermore, the money markets are pricing in the possibility of another BoE rate cut in December, which might continue to undermine the British Pound (GBP). This, along with the underlying bullish sentiment surrounding the US Dollar (USD) validates the negative outlook for the GBP/USD pair. 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
EUR/USD drops toward 1.0850 as USD finds fresh buyers
EUR/USD inches lower to near 1.0850 in the European session on Monday. A renewed US Dollar uptick amid a slightly negative shift in risk sentiment and Trump trade optimism weigh on the pair. All eyes remain on the Fedspeak, in the absence of top-tier data releases.
GBP/USD falls below 1.3050 on resurgent US Dollar demand
GBP/USD falls back below 1.3050 in European trading on Monday, undermined by a modest USD strength. The fundamental backdrop supports prospects for a further depreciating mov, as markets remain risk-averse ahead of the upcoming Fedspeak.
Gold price sticks to gains near all-time peak, renewed USD buying caps gains
Gold price scales higher for the fifth straight day – also marking the seventh day of a positive move in the previous eight – and touches a fresh record high, around the $2,732-2,733 region on the first day of a new week.
Could BTC reach its all-time high of $73,777?
Bitcoin is approaching the resistance level of around $70,000. A firm close above this mark could trigger a rally to retest its all-time high. Ethereum is nearing its descending trendline, with a break and close above signaling a potential rally.
If at first you don’t succeed, keep trying, so the story goes in China
Asian stocks saw a solid lift today, riding the coattails of Wall Street’s rally, but a welcome spark came from China’s big banks slashing their benchmark lending rates. This move injected a fresh wave of optimism into markets, fueling the hope that China’s recent stimulus efforts might finally be gaining economic traction.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.