Pound Sterling Price News and Forecast: GBP/USD struggles to gain any meaningful traction
|British Pound consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus
The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.
The crucial US Consumer Price Index (CPI) report will play a key role in influencing market expectations about the US Federal Reserve's (Fed) rate-cut path. This, in turn, will drive the US Dollar (USD) demand and provide some meaningful impetus to the GBP/USD pair. Ahead of the key data risk, the markets are pricing in a greater chance that the US central bank will cut interest rates at least two times in 2026, which keeps the USD bulls on the defensive. Read more...
GBP/USD inching closer to 1.36
The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England (BoE) held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%. Governor Andrew Bailey voted with the majority to hold but said he sees "scope for some further easing" and expects "a sharp drop in inflation over coming months," with the BoE projecting CPI to fall back to the 2% target by April. UK Q4 2025 Gross Domestic Product (GDP) data released on February 12 showed growth of just 0.1%, with monthly GDP for December also rising 0.1%, confirming the sluggish pace of the UK economy. Sterling found some support from easing domestic political uncertainty after Prime Minister Keir Starmer secured backing from senior cabinet members following the resignation of his chief of staff Morgan McSweeney amid the Lord Peter Mandelson scandal.
On the US side, January Non-Farm Payrolls (NFP) came in at 130K with unemployment at 4.3%, pushing the expected timing of the next Federal Reserve (Fed) rate cut from June to July. Friday's delayed US Consumer Price Index (CPI) release for January is the week's most important event, with consensus expecting headline CPI at 0.29% month-on-month and core CPI at 0.39% month-on-month. A softer reading would weaken the US Dollar and likely push Cable back toward its late-January high. Read more...
GBP/USD climbs as jobless claims dent USD despite soft UK GDP
The Pound Sterling (GBP) rallies during the North American session on Thursday versus the US Dollar (USD) after new jobs data in the US contradicts a stellar Nonfarm Payrolls report released a day ago. Meanwhile, the UK economy grew weaker than expected, yet the British Pound continues to trade with gains. GBP/USD trades at 1.3664, up 0.28%.
The Greenback is extending its losses after the latest Initial Jobless Claims report from the US Department of Labor witnessed a slight rise. Claims for the week ending February 7 rose by 227K, down from a previous print of 232K but exceeded forecasts of 222K. Read more...
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