Pound Sterling Price News and Forecast: GBP/USD slides as turmoil continues

GBP/USD Forecast: Next recovery target aligns at 1.1000

Following Wednesday’s rebound, GBP/USD came under bearish pressure in the Asian trading hours on Thursday and declined below 1.0800. The pair, however, had gathered its recovery momentum and climbed above 1.0850 in the early European session.

The Bank of England’s (BoE) intervention in the gilt market triggered mixed reactions and GBP/USD fluctuated wildly in a relatively wide channel. The BoE announced that it will carry out temporary purchases of long-dated UK government bonds to restore orderly market conditions but noted that the MPC’s annual target of £80 billion stock reduction will remain unaffected. Read more …


GBP/USD slides as turmoil continues

The roller-coaster continues for the British pound, which is down sharply today. In the European session, GBP/USD is trading at 1.0774, down 1.05%.

It has been a remarkable week for the British pound, which has exhibited sharp volatility since Friday, when Chancellor Kwarteng unveiled his mini-budget. The package included unfunded tax cuts, despite weak a weak economy and inflation hovering at 9.9%. The financial package was criticised at home as well as abroad; the International Monetary Fund and US Commerce Secretary Gina Raimondo also panned the plan. Former US Treasury Secretary Lawrence Summers had perhaps the most unkind cut of all, saying that the UK had the worst economic policy of any major country. Read more …


GBP/USD recovers intraday losses, lacks follow-through amid broad-based USD strength

The GBP/USD pair recovers early lost ground to the 1.0765-1.0760 area and climbs to a fresh daily high during the mid-European session. Spot prices, however, struggle to capitalize on the move and remain below the 1.0900 round-figure mark.

The Bank of England’s move on Wednesday to buy long-term bonds to restore stability appears to have calmed the market and acts as a tailwind for the British pound. This, in turn, assists the GBP/USD pair to attract some dip-buying, though a combination of factors continues to act as a headwind and caps any meaningful upside for spot prices. Read more …

Articles You May Like

The bid for stocks and bonds is relentless
Pakistan launches new laws to expedite CBDC launch by 2025
Gold rate today: Yellow metal ticks higher, silver marches towards Rs 66,000
Is there more to the jobs picture? The household survey has been flat since March
USD/CAD Price Analysis: Consolidates below mid-1.3400s ahead of US/Canadian jobs data

Leave a Reply

Your email address will not be published. Required fields are marked *