Pound Sterling Price News and Forecast: GBP/USD tests nine-day EMA support near 1.3400
British Pound: CPI focus supports Sterling against US Dollar – Societe Generale
Sterling enters this week on firmer footing, with political uncertainty fading fast after Andy Burnham's confirmation as Labour leader eased investor concerns over the succession to Keir Starmer. Markets reacted further to reports pointing to Shabana Mahmood as the frontrunner for Chancellor, viewed as the more fiscally disciplined choice.
GBP/USD fell to 1.3437 on Tuesday as investors assessed the appointment of Andy Burnham as the new Prime Minister of the UK and the outlook for monetary policy.
The Pound to Canadian Dollar (GBP/CAD) exchange rate edged slightly higher on Monday as softer Canadian inflation weighed on the 'Loonie', although gains for Sterling were capped as investors awaited more policy detail from Prime Minister Andy Burnham. At the time of writing, GBP/CAD was trading at CA$1.8875, up around 0.1% on.
Pound Sterling Price News & Forecast: GBP/USD could further depreciate after surging toward two-month highs
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GBP/USD has rebounded after two successive daily losses and gained in each of the last three sessions. Is risk setting in?
GBPUSD managed to pass above the resistance of 1.3430 to meet the target of 1.3510 and above. As we see from the chart, a chance for a trading zone between support 1.3320-50 and resistance 1.3555 could hold the market.
The Pound to New Zealand Dollar (GBP/NZD) exchange rate fell to a three-week low last week as strong domestic data and rising Reserve Bank of New Zealand rate hike expectations helped the ‘Kiwi' outperform Sterling. At the time of writing, GBP/NZD was trading at NZ$2.3052, down around 0.8% on the week.
Investors will be watching today's Cabinet announcement and Burnham's first major speech for clues on the new government's fiscal priorities.
Strong U.S. data and rising inflation risks support the dollar as traders reassess Fed rate cuts. Explore the latest outlook for DXY, EUR/USD and GBP/USD.