GBP/USD Price Analysis: Holding Low Around 1.2850
Sterling is holding on to modest gains on Friday after the latest inflation report from the United States (US) bolstered investor bets that the US Federal Reserve could start cutting rates at its September monetary policy meeting. At the time of writing, GBP/USD is trading at 1.2858, virtually unchanged.
GBP/USD has consolidated around 1.2850 after sellers strengthened and pushed the exchange rate above the 1.2900 level that was unsuccessfully reached in the first three days of the week. However, momentum remains in favour of buyers, as indicated by the Relative Strength Index (RSI), although extreme longs in sterling could expose traders to risk if the Bank of England (BoE) cuts interest rates next week. Read more…
GBP/USD: Bulls Fight to Test Resistance at 1.2925 – Scotiabank
The British pound (GBP) rose slightly in serene Asian and European markets after closing at lows yesterday, notes Shaun Osborne, chief currency strategist at Scotiabank.
“With little data to go on and calmer market conditions prevailing across the stock market, GBP benefited from some light demand to cover short positions over the weekend.” Read more…
Sterling holds above two-week low after US core PCE inflation
The British Pound (GBP) remains sideways above a up-to-date two-week low of 1.2845 against the United States Dollar (USD) in Friday’s US session after the release of the United States (US) Personal Consumption Expenditures price index (PCE) report for June. The report showed that the annual core PCE inflation rose steadily by 2.6%, which was higher than the estimate of 2.5%. Furthermore, the core inflation rose by 0.2% month-on-month, which was higher than the estimate and the previous publication of 0.1%.
The core PCE price index is the Federal Reserve’s (Fed’s) preferred measure of inflation, and its fixed nature is a drag on market expectations for Federal Reserve (Fed) rate cuts. According to the CME FedWatch tool, 30-day price data for federal funds futures shows the central bank will begin cutting interest rates in September. Read more…
