GBP/USD holds below 1.2700 on firmer US Dollar, higher US yields
The GBP/USD pair weakens to 1.2695 during the early Asian session on Thursday. The downtick of the pair is supported by the stronger US Dollar (USD) amid the higher US yields and lower bets of the Federal Reserve (Fed) rate cut in September.
In recent weeks, Fed officials delivered a cautious tone on the inflation outlook, prompting traders to lower their bets on an easing cycle this year. Markets are pricing in a 50% chance that the Fed will hold interest rates in September, according to the CME FedWatch Tool. The combination of the Fed’s cautious stance and the stronger US economic data provide some support for the Greenback in the previous sessions. Read more...
GBP/USD Price Analysis: Slumps to fresh weekly lows as bears eye 1.2700
The British Pound fell to a new weekly low against the Greenback on Wednesday as US Treasury bond yields continued to climb. Federal Reserve officials remained cautious and influenced traders' expectations of just 25 basis points of rate cuts seen toward the end of 2024. The GBP/USD trades at 1.2719, down 0.33%.
The GBP/USD formed a three-candle chart formation called an ‘evening star,’ hinting that prices could tumble further. Momentum remains bullish, as depicted by the Relative Strength Index (RSI), but aims toward the 50-midline, which means that buyers are losing momentum. Read more...
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