Pound Sterling Price News and Forecast: GBP/USD recovers slightly after BoE’s rate hike, soft US economic data

GBP/USD trims some of its earlier losses after the Bank of England (BoE) decided to raise rates by a quarter of a percentage point, as it warned borrowing costs will stay high. That, alongside business activity in the United States (US) slowing down, has lent a lifeline to the Sterling (GBP), which tumbled after BoE’s decision to a one-month low of 1.2620. At the time of writing, the GBP/USD is trading at 1.2705, registering minuscule losses of 0.04%. Read More…

The Pound Sterling (GBP) turns extremely volatile as the Bank of England (BoE) raises interest rates by 25 basis points (bps) to 5.25%. Out of the nine-member Monetary Policy Committee (MPC) team, eight members vote for an interest-rate hike while policymaker Swati Dhingra supports an unchanged interest rate decision. While BoE’s Haskel and BoE’s Mann supported a 50 bps interest rate hike. The GBP/USD pair remains under pressure due to bearish market sentiment and fears of a deep recession in the United Kingdom as the central bank raises interest rates consecutively for the 14th time. Read More…

UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia suggest GBP/USD could accelerate its downside to the 1.2640 zone in the short-term horizon. Read More…