GBP extends losses as soft UK data warrants another BoE pause
The post GBP extends losses as soft UK data warrants another BoE pause appeared on BitcoinEthereumNews.com.
GBP/USD Forecast: Pound Sterling could test 1.2100 next Following Tuesday’s sharp drop, GBP/USD edged higher toward 1.2200 early Wednesday. The cautious market mood, however, didn’t allow the pair to extend its rebound. The data from the US revealed on Tuesday that the business activity in the private sector expanded at a slightly stronger pace in early October than in September, with the S&P Global Composite PMI improving to 51 from 50.2. Although US Treasury bond yields continued to push lower, the US Dollar (USD) benefited from the upbeat PMI reading and forced GBP/USD to stay on the back foot. Read more… Pound Sterling extends losses as soft UK data warrants another BoE pause The Pound Sterling (GBP) delivers a breakdown as expectations of a mild recession in the United Kingdom economy have escalated. The GBP/USD pair falls back as higher borrowing costs by the Bank of England (BoE), a poor demand outlook, and deepening geopolitical tensions weigh. The UK’s labor market appears to be facing the consequences of slowing business activity, with employers shedding jobs for the third time in a row. Going forward, investors will focus on the interest rate decision by the BoE, which will be announced next week. The BoE is expected to keep interest rates unchanged at 5.25% for the second consecutive time, and policymakers are expected to downgrade the growth outlook. Read more … Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-extends-losses-as-soft-uk-data-warrants-another-boe-pause-202310251235
Filed under: News - @ October 25, 2023 4:24 pm