Pound Sterling Price News and Forecast: GBP/USD struggles for clear directions
GBP/USD stabilizes near 1.2700 even as softer US data check Fed bets, BoE hawks eye 0.50% rate hike
GBP/USD treads water around 1.2700 as it struggles to justify the hawkish bias about the Bank of England (BoE), as well as fails to cheer the recently downbeat US data, amid sluggish markets on Tuesday. That said, the US holidays and mixed clues about the central banks’ next moves join the fresh fears of recession to restrict the immediate moves of the Pound Sterling.
US yields curve inversion renews fears of economic slowdown as the difference between the two-year US bond coupons and 10-year counterpart marked the deepest inversion since 1981 on Monday. “The yield curve briefly inverted to 42-year lows Monday as investors increasingly expect the Fed to raise its benchmark borrowing rates to keep inflation in check,” said Reuters. Read more…
GBP/USD Price Analysis: Buyers and sellers clash around the 1.2700 figure, though upward bias expected
GBP/USD stays at around the 1.2690s area as the Tuesday Asian session gains; after trading within a 70-pip range on Monday, the pair seesawing around the 1.2658/1.2722 daily high-low. At the time of writing, the GBP/USD exchanges hands at 1.2692.
From a daily chart perspective, the GBP/USD remains neutral to upward biased, though Monday’s price action formed a spinning top, meaning indecision surrounding the pair. However, a bullish continuation is expected as the daily Exponential Moving Averages (EMAs) lie below the current exchange rates. Read more…