GBP/USD Forecast: Pound Sterling could test 1.2250 after US jobs report sts that there is more room on the upside for the pair but investors could refrain from further US Dollar weakness unless the September jobs report disappoints. The modest improvement seen in risk mood and another leg lower in the 10-year US Treasury bond yield made it difficult for the USD to stay resilient against its rivals on Thursday.
UK firms were reluctant to utilize their full capacity and reduced hiring as higher interest rates by the Bank of England have hit demand significantly. Investors are not anticipating a quick revival in the UK’s overall demand as the BoE vowed to keep interest rates higher for a longer period to ensure price stability. BoE Deputy Governor Ben Broadbent sees inflation coming down to 2% in two years as restrictive monetary policy has dampened labor market and economic prospects. Read more...