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GBP/USD
Source: Newsmaker.id
The pound sterling and the euro weakened against the US dollar during Monday's trading (Sept 14) amid rising oil prices and growing expectations that the Federal Reserve will raise interest rates with a hawkish tone this week. GBP/USD fell 0.33% to 1.3482, while EUR/USD weakened 0.55% to 1.1535.
The dollar's strength was bolstered by a surge in Brent crude prices—which rose more than 3% after Saudi Arabia shut down the East-West pipeline following a drone attack. Rising energy prices have heightened inflation concerns and increased market confidence that the Fed will maintain a tight monetary policy.
Markets have largely priced in a Fed rate hike for Wednesday. US inflation data released last week, which came in hotter than expected, further reinforced these expectations. Should the Fed deliver a hawkish message, the Dollar Index could move toward the 99.50–100 range.
Sterling's weakness stems more from dollar strength than from domestic UK factors. GBP/USD fell approximately 0.27% for the day and 0.38% for the week, with no major UK economic data or Bank of England commentary acting as a primary catalyst.
The euro is facing similar pressure. Although the ECB previously signaled a hawkish stance, markets remain skeptical that the central bank will continue to raise interest rates. EUR/USD is now approaching the 1.1500 level, a potential short-term target should the dollar continue to strengthen.
Newsmaker Analysis: The dollar retains the potential to strengthen as long as oil prices remain high and the Fed maintains a hawkish tone. These conditions could push the DXY toward 100, while EUR/USD risks testing the 1.1500 level and GBP/USD could see further declines. However, any signs of de-escalation in the Middle East or a softer stance from the Fed could limit the dollar's gains. (arl)
Source: Newsmaker.id