GBP/USD rises slightly above 1.2650, focus on Fed remarks
The GBP/USD pair registered modest gains near 1.2670 in early Asian trading on Friday. Meanwhile, the USD index (DXY) regained some lost ground after rebounding from multi-week lows near 104.00 in the previous session. The US Federal Reserve remains cautious regarding inflation and the possibility of rate cuts this year. Investors will likely get further cues from the Fed’s Kashkari, Waller and Daly speeches later in the day.
Several Fed officials emphasized the need to keep borrowing costs high for an extended period of time as they await further evidence that inflation is easing. Atlanta Fed President Rafael Bostic said Thursday there remains significant price pressure in the U.S. economy and warned of the need for patience with interest rates. Cleveland Fed President Loretta Mester said it may take longer than expected to gain confidence about the path of inflation, adding that the Fed should maintain a restrained stance for much longer. The cautious approach of Fed policymakers has provided some support for the greenback, weighing on major currency pairs. read more…
GBP/USD Price Analysis: Cable retreats as buyers struggle to clear 1.2700
Sterling erased Wednesday’s gains against the U.S. dollar as investors pushed the major pound to a weekly high on the back of growing disinflation in the United States (US). Investors are pricing in a 38 basis point rate cut by the Federal Reserve towards the end of the year, but the dollar is rebounding. GBP/USD is trading 0.25% lower at 1.2654.
GBP/USD briefly tested 1.2700 as buyers failed to break that level decisively, before retreating from its weekly high, followed by the April 9 high of 1.2709. Nevertheless, buyers are taking a break and the uptrend is maintained. read more…
