GBP/USD recovers some ground after hitting 1985’s lows, ahead of next week’s BoE/Fed decisions
The British pound trims its earlier losses against the greenback after hitting a 37-year low around 1.1350, and recovers the 1.1400 thresholds after registering weaker-than-estimated retail sales, fueled speculations of the UK’s tapping into a recession. At the time of writing, the GBP/USD is trading at 1.1395, below its opening price, by 0.62%. A risk-off impulse keeps most G8 currencies heavy. The greenback pared some earlier losses, as shown by the US Dollar Index, almost flat at around 109.704, yet still 0.04% down. US economic data released by the University of Michigan showed that US consumers remain slightly upbeat regarding the US economy. The Consumer Sentiment in September rose to 59.5, below estimates by a notch but better than the 58.6 achieved in August. Read more…
GBP/USD Weekly Forecast: 21DMA keeps bears alive ahead of BOE, Fed
GBP/USD witnessed good two-way businesses in another volatile week, dominated by hawkish Fed expectations and a bunch of top-tier economic data from both sides of the Atlantic. Cable settled the week deep in the red below 1.1500, down nearly 200 pips, as traders look forward to critical policy decisions from the US Federal Reserve (Fed) and the Bank of England (BOE) due in the week ahead. Read more…
GBP/USD Forecast: A technical correction is pound’s only hope
GBP/USD has extended its slide after having dropped below 1.1400 and touched its lowest level since 1985 at 1.1350. The risk-averse market environment is unlikely to allow the pair to shake off the bearish pressure but sellers could opt to book their profits ahead of the weekend, opening the door to a technical correction. The disappointing data from the UK caused the British pound to suffer heavy losses against its major rivals. The UK’s Office for National Statistics reported that Retail Sales declined by 1.6% on a monthly basis in August following July’s increase of 0.4%. This print came much worse than the market expectation for a decrease of 0.5%. Read more…
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