British Pound languishes below 1.3300 heading into Fed and BoE decisions
The British Pound (GBP) has given away previous gains against the US Dollar (USD) on Wednesday and remains practically flat in the daily chart, trading below 1.3300 and on track to complete a nearly 1.20% decline over the last two weeks. Growing concerns about UK PM Burnham’s welfare reforms and an adverse monetary policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) are hammering the Pound ahead of key monetary policy decisions.
In a few hours, the Fed will likely stand pat on rates, although markets foresee a one-in-three chance of a quarter-point hike. A surprise rate hike would probably send the US Dollar rallying across the board, but the most likely outcome, a pause keeping the door open for a hike in September, will still highlight a more hawkish stance than the BoE and underpin the pair’s bearish bias. Read more…
GBP/USD at month’s lows: The outlook remains weak
GBP/USD continued to consolidate at 1.3283 on Wednesday. The British pound hit a near one-month low in the previous session as investors monitored developments in the Middle East, while the dollar drew support from expectations that the Federal Reserve could raise rates today.
The suspension of US strikes on Iran contributed to a decline in oil prices and somewhat eased inflationary risks. However, US government bond yields fell only modestly, reflecting cautious market sentiment. Read more…
GBP/USD Price Forecast: Near-term bias remains bearish ahead of Fed-BoE policy
The British Pound (GBP) is marginally higher at around 1.3300 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair edges up as the US Dollar ticks lower ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.
In the European session, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally lower to near 101.30. Read more…
