Pound Sterling Price News and Forecast: GBP/USD weakens near 1.2980, snapping the three-day winning streak


GBP/USD remains capped under 1.3000, focus on Fedspeak

The GBP/USD pair weakens near 1.2980, snapping the three-day winning streak during the early European session on Tuesday. The modest recovery of the Greenback drags the major pair lower. In the absence of top-tier data releases from the UK later this week, the USD price dynamic will be the main driver for the GBP/USD. All eyes will be on the Federal Reserve (Fed) Chair Jerome Powell's speech on Friday. 

The UK inflation and employment reports last week supported the Bank of England (BoE) to keep the interest rate steady at 5.0% at the upcoming September meeting. IBOSS chief economist, Rupert Thompson, noted, “The BOE is most likely to leave rates unchanged at their next meeting in September, with the next cut having to wait until November.” The expectation of more rate cuts by the BoE might weigh on the Pound Sterling (GBP) in the near term. Read more...

GBP/USD climbs for a third straight day as Greenback recedes

GBP/USD rose one-third of one percent after the US Dollar continued to recede to kick off the new trading week. Greenback flows extended a near-term course reversal as investors shrug off a recent downswing in market sentiment. A rough patch of bad US data reignited investor fears of an impending US recession, but a late upswing in recent US data prints have soothed investor nerves, who have to returned to waiting for signs of rate cuts from the Federal Reserve (Fed).

The midweek stretch is a quiet affair as markets await key data on Thursday as well as the kickoff of this year’s Jackson Hole Economic Symposium. All three are expected to land on markets beginning on Thursday. Read more...

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