GBP/USD slips as US Dollar steadies ahead of Fed, BoE meetings
The Pound Sterling (GBP) retreats during the North American session on Friday by a modest 0.10% as the US Dollar (USD) recovers some ground, after a week that witnessed US inflation remaining steady above the Fed’s 2% goal but controlled. GBP/USD trades at 1.3556 after hitting a daily high of 1.3580.
The latest consumer and producer price inflation in the US provided a green light to the Fed to resume its easing cycle, as prices, although they remain high, stay below the 3% threshold. Next week, the Federal Reserve is expected to reduce rates by 25 basis points, and the likelihood of providing forward guidance about policy will be clarified by the latest Summary of Economic Projections (SEP). Read more…
United Kingdom FX Today: British Pound awaits next labour market test
The British Pound (GBP) retreated slightly against the US Dollar (USD) on Friday, with the GBP/USD pair trading around 1.3555, down 0.1% on the day, correcting after the previous day’s rebound.
The GBP remains under pressure in the forex market, however, held back by persistent concerns over the health of the UK labour market ahead of next Tuesday’s release of key employment statistics. Read more…
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Pound Sterling drops as UK GDP growth remains stagnant in August
The Pound Sterling (GBP) faces selling pressure against its major currency peers on Friday after the release of the UK Gross Domestic Product (GDP) and factory data for July. The United Kingdom (UK) Office for National Statistics (ONS) reported that the economy remained stagnant in July, as expected, after rising by 0.4% in June.
Growing UK economic concerns are likely to force traders to raise bets supporting more interest rate cuts by the Bank of England (BoE) in the remainder of the year. Currently, there is a 33% chance that the BoE will reduce borrowing rates one more time this year, according to Reuters. Read more…
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Alejandro Roberie