GBP/USD edges lower to near 1.3100 on potential for further BoE rate cuts
Trending Articles- Gold remains bid as lack of Fed clarity and geopolitical frictions persist
- Gold Price Forecast: XAU/USD drifts higher above $4,200 as Fed delivers expected cut
- Gold Price Forecast: XAU/USD climbs above $4,250 as Fed rate cut weakens US Dollar
- U.S. November Nonfarm Payrolls: What Does the Rare "Weak Jobs, Strong Economy" Mix Mean for U.S. Equities?
- Fed Cuts Rates: Bitcoin Rallies Then Retreats - Bear Market Ahead?
- Tesla Stock Hits Record High as Robotaxi Tests Ignite Market. Why Is Goldman Sachs Pouring Cold Water on Tesla?
GBP/USD depreciates as the Pound Sterling struggles on the BoE signaling for further policy easing.
The BoE hinted at further easing if disinflation persists, suggesting the Bank Rate could decline gradually.
CME FedWatch Tool suggests pricing in a 67% chance of a cut in December, down from 62% a day ago.
GBP/USD edges lower around 1.3120 during Asian hours on Friday, after rising 1% over the past two sessions. The pair depreciates as the Pound Sterling (GBP) weakens following the Bank of England’s (BoE) dovish hold in November.
The BoE held interest rates steady at 4% on Thursday, as expected, but the vote indicated a dovish tilt, with four of the nine Monetary Policy Committee (MPC) members favoring a 25-basis-point cut to 3.75%.
BoE Policymakers Sarah Breeden, Dave Ramsden, Swati Dhingra, and Alan Taylor supported the reduction. The BoE signaled openness to further easing, stating that if disinflation progresses, the Bank Rate is likely to follow a gradual downward path.
The GBP/USD pair also faces challenges as the US Dollar (USD) rebounds after posting losses in the previous session. Traders will likely observe the preliminary Michigan Consumer Sentiment Index data on Friday, while the US government shutdown is restricting official data releases like Nonfarm Payrolls (NFP) and Unemployment Rate.
The US Dollar faced challenges as the Challenger Job Cuts report prompted the Federal Reserve (Fed) to lower interest rates at its December meeting. Fed funds futures traders are now pricing in a 67% chance of a cut in December, down from 62% a day ago, according to the CME FedWatch Tool.
Challenger, Grey & Christmas on Thursday, announced that companies cut over 153,000 jobs in October, marking the biggest reduction for the month in more than 20 years.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
