Pound Sterling Price News and Forecast: GBP/USD slumps sharply as BoE signals peak interest rates

The British Pound (GBP) continues its free fall against the US Dollar (USD), after the Bank of England’s (BoE) official comments suggest the central bank is about to reach its peak interest rates. This, and data from the United States (US) showing business activity picked up, increases Federal Reserve hike expectations. The GBP/USD is trading at 1.2502 after hitting a daily high of 1.2588. Read More…

The Pound Sterling (GBP) drops below the psychological support of 1.2500 after facing intense selling pressure post-speech from Bank of England (BoE) Governor Andrew Bailey and policymaker Swati Dhingra. BoE Bailey cited that the central bank is not clear about raising interest rates further. The central bank is expected to remain data-dependent while BoE Dhingra said that current monetary policy is sufficiently restrictive. Read More…

In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, GBP/USD does not rule out a break below the 1.2500 support in the near term. Read More…