Pound Sterling Price News and Forecast: GBP/USD may appreciate toward the two-month high
GBP/USD eased 0.12% on Tuesday, closing near 1.3520 and continuing the broader consolidation around 1.3500 that has held through recent sessions. The pair traded in a roughly 115-pip range between 1.3465 and 1.3580, with an early European push to the session high faded through the New York session before bargain hunters lifted price off the lows. A cluster of small-bodied candles formed about 1.3520 into the close, suggesting positioning is squared away ahead of the Bank of England (BoE) and the Federal Reserve (Fed). On the Pound Sterling side, Thursday‘s BoE policy decision at 11:00 UTC is the dominant catalyst, with the Bank Rate expected to be held at 3.75% on a Monetary Policy Committee (MPC) vote forecast at 8-1-0 (unchanged-hike-cut) versus the prior unanimous 9-0-0 hold. The accompanying Monetary Policy Report and Governor Bailey’s press conference at 11:30 UTC will be parsed for any shift in tone given the inflation pressure flowing through from energy prices since the Iran conflict escalated. Fridays scheduled speech from MPC member Pill at 11:15 UTC offers a further BoE event risk into the weekend. Read more…