Pound Sterling remains on the back foot against USD, moves little after UK CPI report
The GBP/USD pair once again faces rejection near a technically significant 200-day Simple Moving Average (SMA) and turns lower for the second consecutive day on Wednesday. Spot prices stick to modest intraday losses below the 1.3400 mark through the early European session and react little to the latest UK consumer inflation figures.
The UK Office for National Statistics (ONS) reported that the headline Consumer Price Index (CPI) rose 3.0% over the year in February, matching the previous month’s reading and consensus estimates. However,, the core CPI, which excludes volatile food and energy items, came in above the forecast and climbed 3.2% YoY from 3.1% in January. The data validates the Bank of England’s (BoE) hawkish outlook, though fails to provide any impetus to the British Pound (GBP) or the GBP/USD pair amid the emergence of some US Dollar (USD) buying. Read more…
GBP/USD Price Forecast: Traders seem hesitant amid hawkish Fed and BoE expectations
The GBP/USD pair continues with its struggle to make it through a technically significant 200-day Simple Moving Average (SMA) and seesaws between tepid gains/minor losses through the first half of the European session on Wednesday. Geopolitical uncertainties benefit the US Dollar’s (USD) status as the global reserve currency and exert some pressure on the current pair, which reacts little to the latest UK consumer inflation figures. That said, a mixed fundamental backdrop warrants some caution before placing aggressive directional bets.
Reports suggest that diplomatic efforts are underway to introduce a one-month ceasefire mechanism to allow the US and Iran to negotiate on a plan to end the war. This follows US President Donald Trump’s decision to delay planned strikes on Iran’s energy infrastructure by five days, fueling hopes for a de-escalation of tensions in the Middle East. The conflict, however, has shown no signs of easing, with Israel continuing its strikes on the Islamic Republic, and the Trump administration has directed thousands of soldiers from the US Army’s elite 82nd Airborne Division to the Middle East. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-remains-on-the-back-foot-against-usd-202603251130
