GBP/USD: At the lower end of the 1.2725/1.3200 range – Westpac

FXStreet Team FXStreet

Decisive and coordinated policy action from BoE and Government should provide GBP with support, but the prospect of further EU/UK post-Brexit talks should cap the pound, according to economists at Westpac Institutional Bank.

Key quotes

“The first dose came from an inter-meeting BoE 50bps cut of its core Bank Rate back down to the post-Brexit vote ‘insurance’ low of 0.25% seen in 2016.”

“The second dose came from an expansionary budget that included up to GBP30bn of spending to support public services. Such pressures are unlikely to be restricted to the UK and so the initial impact on GBP has been overshadowed by global asset shifts.”

“The compression of global rates towards zero may cause markets to asses the scale of policy support provided to economies. This could favour GBP.”

“With post-Brexit negotiations next week likely cause some concern, GBP/USD may remain at the lower end of its recent 1.2725-1.3200 range.”

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold meets contention near $4,420…for now

Gold extends its recovery past the $4,500 mark per troy ounce on Thursday. The yellow metal’s advance comes amid the resurgence of some selling interest around the, improving risk sentiment, and declining US Treasury yields across the curve.

Bitcoin’s massive storm is back: Why the sell-off is far from over

Bitcoin price action over the last few weeks has felt less like a normal, healthy correction and more like a slow grinding crash that continues to wreak havoc on holdings and trading accounts. And everything suggests that the dramatic crash isn’t over.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.