GBPUSD remains under pressure below 1.34 as the US Dollar holds firm above the 98 mark. The divergence in US–Iran ceasefire narratives continues to support elevated geopolitical and inflation risks, keeping the dollar and crude oil prices firm against broader markets.
EUR/GBP: Upside risks seen as BoE reprices dovishly - ING
The market managed to rebound after printing a low of 1.3217 two weeks ago. As we see from the previous chart, prices managed to meet the target of 1.3460-80 which could lead to a correction.
GBP/USD traded at 1.3364 on Thursday. The pair declined over the previous two sessions and is now showing signs of a tentative recovery amid expectations of a possible de-escalation in the Middle East conflict.
The US Dollar Index (DXY) holds firm at 99.65 as safe-haven demand and high yields offset Fed cut hopes. Is a breakout for GBP/USD and EUR/USD finally brewing?
GBP/USD: Mild downside within mixed outlook – UOB
GBP/USD Price Forecast: Wobbles around 1.3360 amid uncertainty over US-Iran ceasefire
Pound Sterling Price News and Forecast: GBP/USD steadies as the USD holds firm
The Pound to Dollar exchange rate traded narrowly as geopolitical uncertainty supported the US Dollar while UK inflation data underpinned Sterling. Latest — Exchange Rates:Pound to Dollar (GBP/USD): 1.33669 (-0.36%)Euro to Dollar (EUR/USD): 1.15612 (-0.46%)Dollar to Japanese Yen (USD/JPY): 159.3985 (+0.44%) DAILY RECAP: The US.
The Pound to Australian Dollar exchange rate edged higher as firmer UK core inflation supported Sterling while softer Australian data weighed on the ‘Aussie'. Latest — Exchange Rates:Pound to Australian Dollar (GBP/AUD): 1.92357 (+0.3%)Pound to Dollar (GBP/USD): 1.33669 (-0.36%)Australian Dollar to Dollar (AUD/USD): 0.6949.
The daily and weekly charts of the US Dollar retain bullish potential and given the continued tension in the Middle East I think it's clear what drives that scenario. The knock-on effect of that is USD/JPY, and whether the BoJ will be ordered to intervene in effort of knocking the pair back-below the 160.00 handle.
As the trading week progresses, GBPUSD has shown a decline of around 0.4%, with weakness in the pound and strength in the U.S. dollar. This renewed selling pressure emerged after the release of UK inflation data, which raised doubts about how aggressive the Bank of England may be in the short term.