The post GBP/USD holds steady above 1.2700 mark amid subdued USD price action appeared on BitcoinEthereumNews.com.

GBP/USD draws support from subdued USD price action, though it lacks bullish conviction. BoE Governor predicted four rate cuts in 2025 and contributed to capping gains for the GBP. Traders also seem reluctant to place aggressive bets ahead of the US NFP report on Friday. The GBP/USD pair trades with a mild positive bias for the third straight day and holds steady just above the 1.2700 mark during the Asian session on Thursday. Spot prices, however, lack bullish conviction and remain below the weekly high touched on Monday.  The US Dollar (USD) extends its sideways consolidative price move as traders opt to wait on the sidelines ahead of the release of the US Nonfarm Payrolls (NFP) report on Friday. This, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. That said, expectations for a less dovish Federal Reserve (Fed) trigger a modest bounce in the US Treasury bond yields and act as a tailwind for the Greenback.  Investors now seem convinced that US President-elect Donald Trump’s tariff plans and expansionary policies will boost inflation. Moreover, comments from a slew of influential FOMC members on Wednesday, including Fed Chair Jerome Powell, suggested that the US central bank will adopt a cautious stance on cutting rates. This leads to a modest recovery in the US Treasury bond yields and acts as a tailwind for the USD. Apart from this, persistent geopolitical risks stemming from the worsening Russia-Ukraine conflict and trade war fears further offer support to the safe-haven buck. The British Pound (GBP) bulls, meanwhile, remain on the sidelines in the wake of Bank of England (BoE) Governor Andrew Bailey’s expected four interest rate cuts in 2025. This further contributes to capping the GBP/USD pair and warrants caution for bulls. Moving ahead, traders now look…

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Filed under: News - @ December 5, 2024 6:22 am