Pound Sterling moves little as safe-haven demand lifts US Dollar
GBP/USD steadies after registering nearly 1% gains in the previous day, trading around 1.3610 during the Asian hours on Friday. The pair moves little as the US Dollar (USD) gains ground on safe-haven demand amid the ongoing Middle East conflict.
Bloomberg reported on Thursday that US President Donald Trump stated he would continue the naval blockade of Iranian ports, amid concerns that the strategically important Strait of Hormuz may not reopen in the near term. Trump also criticized congressional efforts aimed at restricting his war powers, including a recent Senate proposal that was rejected earlier in the day. Read more…
GBP/USD runs out of gas after BoE hawkish hold ahead of Friday data deluge
GBP/USD rallied 0.96% on Thursday, settling near 1.3600 after a choppy session that saw cable test the 1.3455 area in the European morning before catching a sharp bid through the New York afternoon. The daily candle left a long lower wick from the morning low, with price stalling close to the 1.3600 round figure into the late session.
The Bank of England (BoE) left its main Bank Rate at 3.75% in an 8-1 vote, with chief economist Huw Pill the lone dissenter pushing for a 25 basis point hike. Governor Andrew Bailey leaned into second-round inflation risks during the press conference, signaling that the Monetary Policy Committee (MPC) is prepared to act pre-emptively if energy-driven price pressure begins feeding into wages. On the US side, the Personal Consumption Expenditures (PCE) Price Index rose 3.5% YoY in March, in line with forecasts, while preliminary Q1 Gross Domestic Product (GDP) growth printed at 2% against the 2.3% consensus, a softer undertone that weighed on the Dollar through the New York afternoon. Read more…
GBP/USD Price Forecast: Bullish-engulfing pattern looms, traders eye 1.3600
The GBP/USD pair advances by some 0.78% on Thursday as market participants continue to price in further tightening by the Bank of England (BoE), even though it kept rates steady earlier in the day. At the time of writing, the pair trades at 1.3581 as a technical ‘bullish engulfing’ chart pattern looms.
From a technical perspective, GBP/USD is neutral but tilted to the upside as the pair clears a key resistance trendline around 1.3560/65, clearing the way towards 1.3600. Momentum, as depicted by the Relative Strength Index (RSI), jumped sharply past the 60 reading, an indication that bulls are in charge. Read more…
