Pound Sterling Price News and Forecast: GBP/USD strengthens to around 1.3510 early European session
|GBP/USD gathers strength above 1.3500 as BoE signals gradual easing
The GBP/USD pair trades in positive territory near 1.3510 during the early European session on Wednesday. The Pound Sterling (GBP) strengthens against the Greenback on expectations that the Bank of England (BoE) will follow a gradual monetary easing path in 2026.
The UK central bank delivered a widely expected rate cut to 3.75% last week, but suggested that the bar for further reduction was high, given persistent inflation. Rising bets of a slower BoE monetary easing path could provide some support to the Cable against the US Dollar (USD) in the near term. Money markets believe the BoE will deliver at least one rate cut in the first half of the year, and pricing in nearly a 50% probability of a second before the year-end, according to Reuters. Read more...
GBP/USD Extends Bullish Momentum as the Dollar Weakens
GBP/USD climbed approximately 0.45% on Tuesday, supported by a general decrease in global US Dollar (USD) flows. Investor sentiment is positive as we approach the midpoint of a holiday-shortened week, with the Greenback pressured by expectations for further easing by the Federal Reserve (Fed) into 2026.
On Tuesday, the US Dollar weakened in thin, holiday-shortened trading, as expectations of additional Fed rate cuts next year continued to dampen sentiment, despite stronger-than-expected economic data. A surprisingly robust annualized growth of 4.3% in US Gross Domestic Product (GDP) for the third quarter did not lead to a recovery against the Pound Sterling (GBP), which stepped into 12-week highs against the USD. Nevertheless, the market largely believes the Fed will maintain its position in January before resuming cuts later in the year, with futures indicating two cuts in 2026. Read more...
GBP/USD eases from October highs as markets digest US data
The British Pound (GBP) pares earlier gains against the US Dollar (USD) on Tuesday as traders digest a mixed batch of US economic data. At the time of writing, GBP/USD trades around 1.3478, easing slightly after climbing to its highest level since October 1, near 1.3518.
Sterling eased modestly as the US Dollar found support following stronger-than-expected US Q3 Gross Domestic Product (GDP) data. The US Bureau of Economic Analysis reported that the US economy expanded at an annualised pace of 4.3% in Q3, beating the 3.3% market forecast and accelerating from the previous 3.8% estimate. Read more...
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