GBP/USD Outlook: Lack of buying favours bearish traders close to key 200-day SMA
The GBP/USD pair struggles to capitalize on the overnight bounce from the vicinity of a technically significant 200-day Simple Moving Average (SMA) and oscillates in a narrow range on Thursday. Spot prices remain below the 1.2500 psychological mark through the early part of the European session and well within the striking distance of over a three-month trough touched on Wednesday.
The British Pound (GBP) continues with its relative underperformance in the wake of diminishing odds for a more aggressive policy tightening by the Bank of England (BoE), which is seen acting as a headwind for the GBP/USD pair. Read more…
Pound Sterling turns vulnerable as investors worry about economic outlook
The Pound Sterling (GBP) trades back and forth as investors await the UK CPI data for August, which will set an undertone for the Bank of England’s (BoE) September monetary policy decision. The GBP/USD pair consolidates as investors hope that a hawkish interest rate decision from the BoE will scrap its policy divergence with the Federal Reserve (Fed).
The UK economy is facing varied troubles due to BoE’s restrictive interest rate policy stance such as severely strong wage growth, and a labor market in which demand has started easing. The British economic outlook has turned vulnerable as the overall output is shrinking due to a deteriorating demand environment. Read more…
GBP/USD oscillates in a narrow range around 1.2490, US data eyed
The GBP/USD pair consolidates in a narrow range around 1.2490 during the early Asian session on Wednesday. The major pair remains capped by the 1.2500 barrier ahead of the US economic data released.
Tuesday’s data indicated a bigger rise in the unemployment rate than anticipated, but the BoE remains concerned that wage growth will sustain persistent inflation. The UK’s Office for National Statistics revealed that the UK Unemployment Rate in the three months to July came in at 4.3% from 4.2% in the previous reading, Meanwhile, Employment Change for July declined by 207K from a 66K drop in the previous reading, worse than the estimated 185K drop. Read more…
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