The Pound to Euro (GBP/EUR) exchange rate ended the week near 1.15 after a late-week slide as the oil-driven inflation shock from the Iran war pushed global yields higher and kept rate-cut expectations restrained. Fresh guidance from the Bank of England and the European Central Bank reinforced the view that policy will stay data-dependent.
The GBP/USD like all major currency pairs remains locked within a fairly vicious cycle, which is making day trading a rather tough affair for speculative wagers in the near-term, and things might not change soon.
Pound Sterling Price News and Forecast: GBP/USD trips down below 1.3350 as oil surges
GBP/USD trips down below 1.3350 as oil surges, Fed outlook boosts USD
Pound Sterling Price News and Forecast: GBP/USD retreats
Yesterday, the Bank of England's decision had a significant impact on the pound, which strengthened against other currencies. Although the Official Bank Rate remained unchanged at 3.75%, the market was surprised by the “hawkish” signals, which sharply contrasted with the dovish statements made at the February meeting.
GBP/USD retreats as BoE hawkish shift meets resilient US Dollar
GBP/USD rose during the previous session and is now correcting to 1.3403. The pound responded positively to the Bank of England's decision to keep interest rates unchanged, with market attention focused on the regulator's guidance on how the Iran conflict might influence future policy.
GBP/USD: BoE hawkish tilt underpins Pound – ING
After hitting 4-year highs above 1.3850 in late January, the Pound to Dollar (GBP/USD) exchange rate posted steady losses and hit a 3-month low around 1.3220 in the second week of March before securing a tentative recovery to 1.3350. SocGen considers that the Pound is over-sold on a short-term view with the potential for a limited rebound,.
The US Dollar Index rises to 99.45 as Middle East tensions spark safe-haven demand. See how escalating risks are pressuring the GBP/USD and EUR/USD recovery.
Pound Sterling Price News and Forecast: GBP/USD corrects to near 1.3400 from its weekly high