British Pound hovers near six-month highs with investors awaiting key US events
The British Pound (GBP) remains practically flat for the second consecutive day against the US Dollar (USD), with markets on a “wait-and-see” stance, awaiting key US Inflation data on Wednesday and the Jackson Hole central bankers’ summit on Friday. The GBP/USD pair flatlines around 1.3630 with the six-month highs of 1.3675 reached last week still in the bulls’ target.
FX volatility is unusually low, in the absence of key macroeconomic releases, ahead of August’s US Personal Consumption Expenditures (PCE) Price Index figures, the US Federal Reserve’s (Fed) favourite inflation gauge. The market consensus points to sticky inflationary pressures, which would give further reasons for Fed hawks to call for monetary tightening. Read more…
GBP/USD holds near highs: Focus turns to key events later this week
GBP/USD is holding at 1.3627 on Tuesday. In the final full week of August, the pair remains near its highest level since mid-February. Sterling is being supported by dollar weakness following the US Treasury’s unexpected decision to at least double its purchases of long-term government bonds.
Investors are also awaiting details of new sanctions against Iran. The highlight of the week will be Fed Chair Kevin Warsh’s speech at Jackson Hole on Friday, which could shape expectations for the future trajectory of US interest rates. Read more…
GBP/USD Price Forecast: Rally pauses below 1.3700
The British Pound (GBP) trades marginally higher against the US Dollar (USD) at around 1.3640 during the European trading session on Tuesday, even as the US Dollar Index (DXY) edges up, indicating strength in the British currency.
At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades slightly higher to near 99.10. The Pound Sterling gains despite market experts seeing the Bank of England (BoE) holding interest rates steady in the near term. Read more…
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