The post Pound Sterling struggles to hold gains as BoE Bailey favors gradual interest rate cut path appeared on BitcoinEthereumNews.com.

The Pound Sterling ticks down on Friday against the US Dollar after moving higher on Thursday. The BoE signaled it would follow a more gradual rate-cut path. Both the Fed and the BoE cut interest rates by 25 bps on Thursday. The Pound Sterling (GBP) trades lower against the US Dollar (USD) below the psychological resistance of 1.3000 in Friday’s London session. The GBP/USD weakens slightly as the US Dollar strives to gain ground after a sharp correction on Thursday. The US Dollar Index (DXY), which gauges Greenback’s value against six major currencies, trades in a tight range near 104.50. The Greenback retraced almost 60% of Wednesday’s rally on Thursday as traders unwinded some of the so-called ‘Trump trades’ and the Federal Reserve (Fed) Chair Jerome Powell’s commentary was interpreted as slightly dovish.  The US Dollar rallied in October and in the first week of November as traders priced in Republican Donald Trump’s victory in the United States (US) presidential election. The Federal Reserve cut interest rates by 25 basis points (bps) to 4.50%-4.75%, as expected. Jerome Powell said in the press conference following the decision that he remained confident over the continuation of the policy-easing cycle, adding that the disinflation trend towards the bank’s target of 2% is intact and that there are some signs of slowing labor market conditions. On Trump’s victory, Powell said he sees no near-term effects on the interest rate path and refrained from speculating about it. Trump’s victory is widely seen as inflationary, given that he promised to raise import tariffs and lower corporate taxes in his election campaign.  According to the CME FedWatch tool, the likelihood of an interest rate cut of 25 bps to 4.25%-4.50% in the December meeting is 71.3%. In Friday’s session, investors will focus on Fed’s Governor Michelle Bowman’s…

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Filed under: News - @ November 8, 2024 9:23 am