GBP/USD Surges to New Multi-Month High, Targets Mid-1.2700s as USD Weakens

  • GBP/USD on Fire: Gains Favorable Traction for 5th Consecutive Day, Hits 3-Month High
  • USD Weakens as Fed Hints at Policy Alleviation in 2024
  • BoE Rate Cut Chances Decline, Fueling GBP/USD Rally

The GBP/USD is on fire, soaring for the 5th day in a row and reaching a fresh three-month peak during the Asian session on Wednesday. Trading around the 1.2715-1.2720 area, the pair is up 0.20% for the day, showing strong momentum and a potential extension of its uptrend.

The USD Index (DXY) has hit its lowest level since August 11, dragged down by bets for a series of rate cuts by the Fed in 2024. Fed Governor Christopher Waller’s dovish comments overnight have sparked expectations for policy easing, pushing the dollar lower.

As market sentiment turns bullish, the GBP/USD pair is benefitting from decreasing chances of an early BoE rate cut, adding to its upward momentum.

With no major UK data due for release, market focus will be on the United States financial docket and BoE Governor Andrew Bailey’s remarks, as traders look for further clues to guide their short-term trading decisions.

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