The post GBP jumps as UK inflation ticks up, Fed-BoE policy in focus appeared on BitcoinEthereumNews.com.

Pound Sterling jumps as UK inflation ticks up, Fed-BoE policy in focus The Pound Sterling (GBP) surges to near 1.3220 against the US Dollar (US) in Wednesday’s London session after the release of the hot UK inflation data for August. The GBP/USD pair reclaims the immediate resistance of 1.3200, however, it is expected to face sheer volatility as the Federal Reserve’s (Fed) monetary policy decision will be announced at 18:00 GMT. According to the CME FedWatch tool, the central bank is certain to start reducing interest rates. This will be the first interest rate cut decision by the Fed in over four years. However, the debate is over the pace by which key borrowing rates will be reduced. 30-day Federal Funds Futures pricing data shows that the probability of the central bank cutting rates by 50 basis points (bps) to 4.75%-5.00% is at 65%, while the rest favors a 25-bps rate cut. Read more… GBP/USD Forecast: Pound Sterling gathers bullish momentum after UK data, Fed is next GBP/USD gained traction in the European session on Wednesday and climbed above 1.3200 after closing in negative territory on Tuesday. The pair’s technical outlook points to a buildup of bullish momentum as market focus shifts to the Federal Reserve’s monetary policy announcements. The UK’s Office for National Statistics reported early Wednesday that annual inflation, as measured by the change in the Consumer Price Index (CPI), held steady at 2.2% in August, as expected. The core CPI, which excludes volatile food and energy prices, rose 3.6% on a yearly basis, up from the 3.3% increase recorded in July and above analysts’ estimate of 3.5%. With the immediate reaction, Pound Sterling gathered strength against its rivals. Read more… Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-jumps-as-uk-inflation-ticks-up-fed-boe-policy-in-focus-202409181206

---

Filed under: News - @ September 18, 2024 2:22 pm