GBP/USD advances to fresh multi-month peak, eyes mid-1.2700s amid bearish USD

The GBP/USD pair scales higher for the fifth straight day – also marking the eighth day of a positive move in the previous nine – and advances to a fresh three-month peak during the Asian session on Wednesday. Spot prices currently trade around the 1.2715-1.2720 region, up 0.20% for the day, and seem poised to prolong a near three-week-old uptrend in the wake of sustained US Dollar (USD) selling.

The USD Index (DXY), which tracks the Greenback against a basket of currencies, sinks to its lowest level since August 11 amid rising bets for a series of rate cuts by the Federal Reserve (Fed) in 2024. The expectations were reaffirmed by the overnight dovish remarks by Fed Governor Christopher Waller, saying that policy is currently well positioned to slow the economy and get inflation back to the 2% target. Read more...

GBP/USD holds above the 1.2700 mark ahead of the US GDP data

The GBP/USD pair gains momentum above 1.2700 during the early European session on Wednesday. The uptick of the pair is supported by the weaker US Dollar (USD) and lower US Treasury bond yields. The pair currently trades near 1.2715, up 0.19% on the day.

The Bank of England (BoE) governor, Jonathan Haskel said inflationary pressures remain in the UK labor market and there was no way to cut interest rates from their 15-year high any time soon. While BoE Deputy Governor Dave Ramsden said monetary policy would need to be restrictive for some time to bring inflation down. On Monday, BoE Governor Andrew Bailey said getting inflation down to the central bank's 2% target will be hard work as most of its recent decline was caused by the unwinding of the surge in energy prices last year. Read more