GBP/USD Weekly Forecast: Pound Sterling not out of the woods yet as US inflation looms
The Pound Sterling (GBP) closed the week deep in the red against the US Dollar (USD), as the GBP/USD extended the correction from 30-month highs to below 1.3100.
GBP/USD failed to sustain at higher levels and returned to negative territory, giving up almost 300 pips in the past week. The pair faced a double whammy, with the resurgence of the demand for the US Dollar on one hand while on the other side, the Pound Sterling was thrown under the bus on the Bank of England’s (BoE) dovish policy expectations and the risk-averse market environment. Read more...
GBP/USD drifts higher above 1.3100, potential upside seems limited
The GBP/USD pair posts modest gains to near 1.3130, snapping the three-day losing streak during the early Asian session on Monday. However, the upside of the major pair might be limited amid the reduced bets of the Federal Reserve interest rate cuts after the upbeat US Nonfarm Payrolls (NFP) on Friday.
The Fed lowered its cutting cycle by 50 basis points (bps) in September but stronger-than-expected reduced the odds that the larger than “normal” cut will be repeated. According to the CME Fedwatch Tool, financial markets are now pricing in nearly 97.4% chance of 50 basis points (bps) Fed rate cuts in September, up from 31.1% before the NFP data. Read more...
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EUR/USD stays depressed toward 1.0950 ahead of EU data
EUR/USD holds lower ground, approaching 1.0950 in the early European session on Monday. The pair struggles despite the risk-on market mood, as the US Dollar clings to strong US Nonfarm Payrolls-led gains. Eurozone data and Fedspeak remain in focus.
GBP/USD turns south toward 1.3100, Fedspeak awaited
GBP/USD defends 1.3100 in European trading on Monday, erasing early gains. The US Dollar finds fresh demand, shrugging off the risk flows, as attention toward speeches from several Fed policymakers for fresh impetus after Friday's bumper Nonfarm Payrolls report.
Gold buyers stay hopeful whilst key $2,630 support holds
Gold price is in the red at the start of a new week on Monday but stays within a familiar range at around $2,650. Amidst the persistent Middle East geopolitical escalation, Gold price now shifts its attention to speeches from US Federal Reserve policymakers on Monday, anticipating the critical US CPI data later in the week.
Bitcoin breaks above its $62,000 resistance barrier
Bitcoin has surged past its resistance barrier, signaling a potential rally, while Ethereum is testing a critical resistance level near $2,500, a close above suggesting further gains. In contrast, Ripple is approaching its resistance, and a rejection here could lead to a continuation of its downtrend.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
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