GBP/USD is mainly a USD story, with UK-US yields spreads favouring the USD.Ahead of the Bank of England (BoE) meeting next week, economists at Westpac remain neutral, expecting an extension of the recent rangebound consolidation between 1.2430-1.2600.
GBP/USD remains mostly a USD story
“The BoE is expected to hike four more times this year, taking the base rate to 2.0% which is considered around neutral. Despite the prospect of higher rates, GBP remains vulnerable to retesting its recent lows.”
“GBP/USD is mainly a USD story, with UK-US yields spreads also favouring the USD.”“Ahead of the MPC, we remain neutral, expecting an extension of the recent range of 1.2430-1.2600.”
Euro’s fate depends on ECB’s rate hike guidance .
The European Central Bank’s (ECB) rate hike guidance in light of updated macroeconomic projections will drive the shared currency’s performance against its rivals. Investors want to know whether the ECB will commit to a 50 bps rate hike in July given the moderation in activity.
EUR/USD rebounds from 1.0700 ahead of all-important ECB decision
EUR/USD has started to edge lower toward 1.0700 in the early European session but managed to stage a modest rebound. The ECB is widely expected to keep its rates unchanged following the June meeting but rate hike guidance could trigger a significant reaction.
GBP/USD fluctuates in tight range above 1.2500
GBP/USD has erased a large portion of its daily losses after having tested 1.2500 earlier in the day. The greenback stays on the back foot amid retreating US yields and helps the pair edge higher ahead of the ECB’s monetary policy announcements.
Gold Price teases bulls around $1,850 ahead of ECB, US inflation
Gold Price grinds higher during the third positive day as the softer US dollar battles the market’s cautious mood ahead of the ECB decision. XAUUSD picks up bids near $1,853 heading into the European session.