GBP/USD advances to multi-week high, focus remains on US PPI and FOMC minutes
The GBP/USD pair gains some positive traction for the sixth successive day on Wednesday and climbs to a near three-week high during the Asian session. Spot prices currently trade just below the 1.2300 round-figure mark and remain well supported by the prevalent selling bias surrounding the US Dollar (USD).
The recent dovish remarks by several Federal Reserve (Fed) officials forced investors to scale back their bets for more aggressive policy tightening by the US central bank and continue to drag the US Treasury bond yields lower. This, in turn, undermines the Greenback and acts as a tailwind for the GBP/USD pair. In fact, Atlanta Fed President Raphael Bostic said on Tuesday that the US central bank does not need to raise interest rates any further and that he sees no recession ahead. Read more …
GBP/USD Forecast: Pound Sterling needs to clear 1.2300 to keep buyers interested
GBP/USD rose above 1.2300 for the first time since September 22 on Wednesday but struggled to gather further bullish momentum. The negative shift seen in risk sentiment could limit the pair’s upside in the near term but the US Dollar (USD) could have a hard time preserving its strength in case policymakers deliver dovish remarks.
San Francisco Federal Reserve President Mary Daly and Atlanta Federal Reserve President Raphael Bostic both argued on Tuesday that the policy was restrictive enough to bring inflation back to the 2% target. Bostic said that there was no need for one more rate hike and Daly noted that the recent increase in US yield could be seen as the equivalent of another rate increase. Read more…
Pound Sterling refreshes two-week high ahead of UK factory data
The Pound Sterling (GBP) continues its rally into a sixth day on Wednesday as investors shift their focus to United Kingdom factory data for August, which will be published on Thursday. The GBP/USD pair capitalizes on hawkish guidance from Bank of England (BoE) policymaker Katherine Mann and upbeat market sentiment. The Pound Sterling has performed better against the US Dollar as market participants are not expecting a further widening of the policy divergence between the BoE and the Federal Reserve (Fed).
UK economic activities have been facing the wrath of higher interest rates. Factory activities for August are expected to continue their contracting spell as the weak demand environment has dented the domestic and overseas markets. Read more…
