The Pound to Dollar (GBP/USD) exchange rate drifted lower on Wednesday after softer-than-expected UK inflation data added to concerns that the Bank of England may delay further monetary tightening. At the time of writing, GBP/USD was trading around $1.3385, marginally lower on the session.
Pound Sterling Price News and Forecast: GBP/USD flatlines near 1.3435 in Thursday's Asian session
Pound Sterling Price News and Forecast: GBP/USD rebounds as Iran deal hopes sink USD
UK CPI fell to its lowest rate in over a year, to 2.8% year-on-year in April, down from 3.3% in the previous month, amid a more favourable annual comparison and government support with bills. The figure was lower than the 3% forecast despite higher petrol pump prices.
Sticky US inflation data gave the Dollar fresh momentum despite the ongoing US-Iran ceasefire. DXY reclaimed $99.39 with bullish channel breakout, EUR/USD faced bearish Fib breakdown, and GBP/USD held rising channel floor at $1.3393.
Pound Sterling Price News and Forecast: GBP/USD depreciates amid escalating Middle East tensions
Kevin Warsh was confirmed as the next Federal Reserve Chairman after a lengthy, unpredictable political process and financial markets are already experiencing significant changes.
Pound Sterling Price News and Forecast: GBP/USD slides as US yields spike, UK jobs market cracks
Forex Market update: The US Dollar rallies sharply against major currencies ahead of newly confirmed Fed Chair Kevin Warsh's upcoming swearing-in ceremony. Driven by widening yield gaps, sticky inflation, and expectations of a leaner central bank balance sheet, explore critical technical targets for the DXY, EUR/USD, and GBP/USD.
The Euro to Pound Sterling (EUR/GBP) exchange rate edged higher to 0.8681 after rebounding from last week's pullback from the 0.8720 area. EUR/GBP remains within the broad upward trend that has dominated much of the past year, with EUR/GBP up around 3% over the last 12 months.
Sterling softened after the latest UK labor market data reinforced expectations that the Bank of England is likely to adopt a more patient near-term stance on interest rates. The sharp decline in payroll employment, rising unemployment rate, and cooling wage growth excluding bonuses all pointed to a labor market that is gradually losing momentum, reducing pressure for immediate additional tightening from the BoE.
GBPUSD below 1.3485 which caused a further drop toward 1.3340-80. As we see over the chart, the market is facing a daily trend support around 1.3280 which could lead to a rebound with resistance around 1.3630.