GBP/USD trades below 1.3100 amid firmer USD, UK budget uncertainty
The GBP/USD pair struggles to capitalize on its gains registered over the past two days and kicks off the new week on a softer note amid a broadly firmer US Dollar (USD). Spot prices, however, manage to hold comfortably above last week’s swing low and currently trade just below the 1.3100 mark, down less than 0.15% for the day.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, sits near its highest level since late May amid less dovish Federal Reserve (Fed) expectations. In fact, chances for another rate cut by the US central bank in December reduced further following the delayed release of mostly upbeat US Nonfarm Payrolls (NFP) report for September. This offset concerns about the weakening economic momentum on the back of the longest-ever US government shutdown and continues to underpin the USD, and weighs on the GBP/USD pair. Read more…
GBP/USD Weekly Forecast: Pound Sterling appears ‘sell-on-bounce’ trade as UK Budget looms
The Pound Sterling (GBP) broke its previous week’s consolidation to the downside against the US Dollar (USD), as GBP/USD revisited levels below the 1.3100 threshold. The broad-based USD resurgence and increased concerns over the United Kingdom’s (UK) fiscal health emerged as the two main underlying themes during the week, driving the GBP/USD price action.
The Greenback garnered strength from receding interest rate cut bets for the US Federal Reserve (Fed) and worries about AI technology stock overvaluations. However, the former was the main catalyst. Markets preferred to hold the US currency in the lead-up to the quarterly earnings report from chipmaker giant Nvidia and the first US employment data release, following nearly two months without public data. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-kicks-off-the-new-week-on-a-softer-note-202511240457
