GBPUSD Approaches Two-Month High
London: 20 November 2023 (TraderMade): In the latest market developments, the GBPUSD pair is improving for the second consecutive day, buoyed by a weakening US Dollar. The dovish outlook on Fed policy and optimism surrounding Chinese stimulus measures are contributing to the decline in the safe-haven appeal of the US Dollar.
GBPUSD latest updates
The GBPUSD pair closed at 1.24624 on Friday, 17 November. It has rebounded on Monday, inching closer to the psychological mark of 1.2500. At about 9:08 AM GMT, the pair was at 1.24852, showing a 0.18% increase. The ongoing selling pressure on the US Dollar is attributed to the prevailing expectations of a dovish Federal Reserve.
Possible rate cuts
Investors are increasingly confident that the Fed has concluded its tightening measures, a sentiment reinforced by a softer US Consumer Price Index (CPI) report from last week. The market consensus now leans towards a potential rate cut by the Fed as early as March 2024.
The positive sentiments are fueled by China's commitment to implement further policy support for its struggling real estate sector, instilling confidence among investors.
Experts anticipate that the Bank of England (BoE) may initiate rate cuts in the 2024 first half. Yet, the GBPUSD bulls remain resilient.
