Pound Sterling Price News and Forecast: GBP/USD rebounds amid USD weakness, BoE hike spurs recession woes

GBP/USD climbs after dropping to a last week’s low of 1.2685, surpassing the 1.2700 figure amidst a risk-off impulse and broad US Dollar (USD) weakness across the board. The previous week’s Bank of England (BoE) 50 bps rate hike weakened the Pound Sterling (GBP) on fears that higher rates could spur a recession in the UK. Nevertheless, the GBP/USD clings to its 0.03% gains, trading at 1.2718. Read More…

The Pound Sterling (GBP) has dropped sharply to near 1.2700 despite the United Kingdom’s government looking beyond monetary tools to bring down stubborn inflation. The recovery in the GBP/USD pair has faded as new fiscal measures such as cutting wages of public sector employees by the British administration are losing their impact. The British government also asked companies to bring down profit margins to tame sticky inflation, which might help trim fears of a bleak economic outlook. Read More…

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, GBP/USD is still seen trading within the 1.2650-1.2850 range. Read More…