GBP/USD Price Forecast: Attracts bids near 20-day EMA as US Dollar corrects
The GBP/USD pair recovers its early losses and turns positive around 1.3490 during the European trading session on Friday. The Cable gains as the US Dollar (USD) corrects after a three-day winning streak. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.1% lower to near 98.70.
The US Dollar comes under pressure ahead of the United States (US) markets opening; however, the broader outlook of the currency remains firm as oil prices remain higher amid fears of a prolonged closure of the Strait of Hormuz, a critical passage to almost 20% of global energy supply. Read more…
GBP/USD Price Forecast: Bulls seem hesitant as US-Iran tensions counter Fed-BoE divergence
The GBP/USD pair edges higher during the first half of the European session on Friday and recovers a part of the previous day’s losses to levels just below mid-1.3400s, or a nearly two-week trough. The US Dollar (USD) pauses following a three-day move up as bulls await further developments surrounding the US-Iran saga. This, in turn, acts as a tailwind for the currency pair, although a mixed fundamental backdrop warrants caution before confirming that the recent pullback from the 1.3600 mark, or over a two-month high touched last week, has run its course.
Despite a temporary extension of the US-Iran ceasefire, investors remain on edge amid the lack of progress in peace talks due to the instability around the critical Strait of Hormuz. US President Donald Trump ordered the US Navy to shoot and kill any boat laying mines in the critical shipping channel. Furthermore, Iran has set the complete removal of the US naval blockade as a strict precondition for resuming negotiations. This dampens hopes for a durable de-escalation and keeps geopolitical risks in play, underpinning safe-haven USD and capping the GBP/USD pair. Read more…
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