GBP/USD Price Forecast: The bearish outlook remains in play near 1.2900
The GBP/USD pair weakens to near 1.2910 during the early European session on Monday. The stronger US Dollar (USD) following Donald Trump’s election win continues to undermine the major pair as traders expect the inflationary impulses will keep the US Federal Reserve (Fed) from cutting rates as much as they otherwise would have.
On the other hand, the Bank of England (BoE) reiterated that “a gradual approach to removing policy restraint remains appropriate. Monetary policy will need to continue to remain restrictive for sufficiently long.” Less dovish remarks from the UK central bank could help limit the INR’s losses in the near term. Read more...
GBP/USD Weekly Forecast: Bets on strong rebound look premature as markets shift to UK GDP, US inflation data
The Pound Sterling (GBP) staged a comeback versus the US Dollar (USD), lifting the GBP/USD pair from the lowest level in three months near 1.2835.
GBP/USD returned to positive territory for the first time in five weeks, as the global market optimism and the central banks’ policy announcements overshadowed the resurgent demand for the US Dollar. Read more...
GBP/USD struggles for firm near-term direction, remains confined in a range around 1.2900
The GBP/USD pair kicks off the new week on a softer note, albeit it lacks follow-through selling and remains confined in a range around the 1.2900 mark amid mixed fundamental cues.
The US Dollar (USD) holds steady below a four-month high touched last week amid expectations that US President-elect Donald Trump's policies would spur inflation and restrict the Federal Reserve's (Fed) ability to ease policy aggressively. This, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair, though the Bank of England's hawkish stance helps limit the downside. Read more...
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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