Pound Sterling Price News and Forecast: GBP rises as the USD loses ground due to dampened safe-haven demand
|GBP/USD holds gains above 1.3600 due to improved risk appetite
GBP/USD extends its winning streak for the third successive session, trading around 1.3620 during the Asian hours on Wednesday. The pair is hovering around 1.3648, the highest since February 2022, which was recorded on Tuesday. The risk-sensitive GBP/USD pair receives support from the improved risk appetite amid easing tensions in the Middle East.
US President Donald Trump announced that a ceasefire between Iran and Israel had taken effect on Tuesday, raising hopes for an end to the 12-day conflict. However, caution lingered amid uncertainty over the ceasefire’s durability. Traders will likely focus on the potential revival of nuclear talks and the fate of Iran’s enriched uranium. Read more...
GBP/USD overtakes 1.3600 as ceasefire uncertain, Powell tempers rate cut hopes
The Pound Sterling extended its gains versus the US Dollar on Tuesday, as the proposed ceasefire between Israel and Iran was violated by both parties, despite US President Donald Trump's warning. Nevertheless, the risk appetite remains strong, despite the ongoing developments in the Middle East. The GBP/USD trades above 1.3600, gaining over 0.65%, after printing a weekly high of 1.3626.
Aside from geopolitical risks, the Fed Chair Jerome Powell said in prepared remarks for his testimony at the US Congress, that rate cuts can wait, as the central bank studies the impact of tariffs on the economy. He stated that “tariffs this year are likely to push up prices and weigh on economic activity,” adding that the impact could be short-lived or persistent. Read more...
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