GBP/USD Forecast: Pound Sterling could extend correction once below 1.2350
After having touched its highest level since late January at 1.2423 in the Asian session on Friday, GBP/USD has reversed its direction and declined below 1.2400. The pair closes in on key support level that aligns at 1.2350. The Personal Consumption Expenditures (PCE) Price Index data from the US will be watched closely by market participants. It’s also worth noting that the market volatility is likely to pick up later in the day amid month and quarter-end flows. Read more…
GBP/USD outlook: Cable eases after mixed UK data, but larger bulls are still intact
Cable eases from new 2-month high in early European trading on Friday, as markets digest mixed data.
UK Q4 GDP ticked above expectations, signaling that the economy started to gain traction after contracting in the third quarter and current account gap narrowed significantly, but house price index came well below expectations, partially offsetting positive impact. Read more…
GBP/USD will likely simply track EUR/GBP and make its way slowly back to 1.30 – SocGen
Calmer times for Sterling. Economists at Société Générale expect GBP/USD to track EUR/GBP and move gradually higher toward 1.30.
“Since the start of November, Sterling has tracked five-year yield differentials, with a narrowing in the UK-German spread of nearly 110 bps in November-January taking EUR/GBP from 0.86 to almost 0.90.” Read more…
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