Pound Sterling cracks as BoE casts doubts over upcoming hikes
The Pound Sterling (GBP) cracked significantly amid increasing risk-aversion and dovish remarks from Bank of England (BoE) Governor Andrew Bailey and policymaker Swati Dhingra about September’s monetary policy decision. The GBP/USD pair is expected to remain on tenterhooks as policy divergence between the BoE and the Federal Reserve (Fed) is likely to persist if the UK’s central bank decides to pause the policy-tightening spell.
Swati Dhingra said Wednesday that the current interest rate policy is sufficiently restrictive and further hikes in interest rates would make the economic outlook vulnerable. Fading consumer spending momentum and a deteriorating demand environment have started impacting the services sector, according to the latest survey data. Read more...
GBP/USD Forecast: Sellers could continue to ignore oversold conditions
GBP/USD came under renewed bearish pressure in the early European session on Thursday and dropped to its weakest level in three months below 1.2500. Although the near-term technical outlook highlights oversold conditions for the pair, a steady recovery could be difficult to come by in the risk-averse market atmosphere.
The US Dollar (USD) gathered strength against its rivals in the American session on Wednesday after the ISM Services PMI report showed that business activity in the service sector continued to grow at a healthy pace in August. Meanwhile, cautious comments from Bank of England (BoE) officials on the policy outlook weighed on Pound Sterling, causing GBP/USD to stretch lower. Read more...
GBP/USD Price Analysis: Flat-lines around 1.2500, near a three-month low
The GBP/USD pair consolidates its recent losses around 1.2500 during the Asian session on Thursday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, hovers around 104.80 after retreating from the highest level since March. The strength of the Greenback is bolstered by the upbeat US ISM Services PMI, which came in better than expected and improved to a six-month high level of 54.5 in August.
On the other hand, the Pound Sterling (GBP) was weakened by Bank of England (BoE) Governor Andrew Bailey's dovish remark on Wednesday. He stated that BoE is much closer to ending its hiking cycle. Read more...
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