GBP/USD holds above mid-1.3300 areas as traders await key data and Bank of England this week
The GBP/USD pair remains on the defensive during the Asian session on Monday, although it lacks bearish conviction and holds above pivotal support of the 200-day simple moving average. Spot prices are currently trading around the 1.3360 area, almost unchanged on the day.
The US Dollar (USD) is looking to build on last week’s modest rebound from its lowest level in over two months, and has become a major factor acting as a headwind for the GBP/USD pair. A slight deterioration in global risk sentiment – as evidenced by the generally weaker tone around equity markets – is expected to provide some support to the safe-haven currency. However, US dollar bulls seem hesitant to place a strong bet amid dovish expectations from the US Federal Reserve. Read more…
GBP/USD Weekly Forecast: Attention turns to BoE and firm data
The British pound made gains for the third week in a row, finally breaching the 1.3400 level. It’s been a steady climb, which says more about the other side of the pair than anything going on at home. The pound’s recent rise came almost entirely on the back of renewed weakness in the US dollar, especially after the Federal Reserve cut interest rates on Wednesday.
Looking ahead, the British pound is likely to remain in the spotlight. A busy domestic calendar is lined up, with key UK data releases and the Bank of England (BoE) policy meeting on December 18 set to set the near-term trend. In the area of interest rates, UK financial markets have been much less decisive. 10-year government bond yields fell during the week and ended barely unchanged, offering little new signals for forex traders. Read more…
