GBP bounces back against US Dollar

Pound Sterling bounces back against US Dollar as market sentiment improves

The Pound Sterling attracts significant bids against the US Dollar (USD) on Monday, rising 0.45% to near 1.3255 during the European trading session. The major currency pair gains as the risk-on impulse strengthens, following comments from Iran that it is reviewing the United States (US) ceasefire proposal.

The market sentiment turning favorable for riskier assets has diminished the appeal of safe-haven assets. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is down 0.35% to near 99.85. The DXY traded marginally higher in the Asian trade. Read more…

GBP/USD Weekly Forecast: Holds up, but cracks are starting to show

Another bearish week for the British Pound led to the second consecutive weekly retracement for GBP/USD, which was primarily driven by geopolitical concerns rather than domestic issues, while market participants currently do not expect the Bank of England (BoE) to resume interest rate cuts this year. Instead, markets pencil in around 50 basis points of tightening by year-end.

Sterling has held up reasonably well recently, but the story underneath is starting to look a bit more fragile. At first glance, the move makes sense. Markets have aggressively repriced BoE expectations, shifting from rate cuts to the possibility of further tightening. That swing has provided a solid cushion for the British Pound, helping it outperform most of the G10 space outside of the US Dollar and commodity currencies. Read more…