GBP/USD trades near 1.2850 after recovering recent losses, BoE's Breeden speech awaited

The GBP/USD pair regains its ground ahead of BoE Deputy Governor for Financial Stability Sarah Breeden's speech.
Analysts at Deutsche Bank expect the BoE to potentially react strongly at its May meeting with a significant 50 basis point rate cut.
President Trump announced an immediate tariff hike on Chinese imports to 125% shortly after China raised duties.

Akhtar Faruqui FXStreet

The GBP/USD pair recovers its daily losses and continues its winning streak for the third successive session, hovering around 1.2850 during Asian trading hours on Thursday. The British Pound (GBP) came under pressure following the release of weaker-than-expected data from the RICS Housing Price Balance, which showed just a 2% increase in March. This marked a significant slowdown from the 20% and 11% gains recorded in January and February, respectively, and fell far short of the anticipated 8% rise—highlighting a stagnation in price growth over recent months.

Further weighing on the British Pound was renewed trade tension between the US and China. US President Donald Trump announced an immediate hike in tariffs on Chinese imports to 125%, following China’s retaliatory increase in duties on US goods to 84%. This escalating trade war poses a negative backdrop for the United Kingdom (UK), which appears ill-equipped to compete in a price war with China. The tit-for-tat tariff hikes overshadowed earlier efforts to ease trade tensions, where the US had temporarily reduced tariffs to 10% for 90 days to support broader negotiations.

Bank of England (BoE) Deputy Governor for Financial Stability and MPC member Sarah Breeden will deliver remarks at the Market News International Connect event, "UK Economic and Financial Stability Prospects," held online.

Market sentiment has shifted dovish toward the Bank of England (BoE), with traders increasingly expecting policy easing in response to global economic risks. Deutsche Bank analysts anticipate that the BoE could respond decisively at its May meeting with an aggressive 50 basis point (bps) rate cut.

Meanwhile, the Minutes from the latest Federal Open Market Committee (FOMC) Meeting suggested that US policymakers are nearly unanimous in acknowledging the dual threat of persistent inflation and slowing economic growth. The Minutes warned of “difficult tradeoffs” ahead for the Federal Reserve as it navigates these competing challenges.

(This story was corrected on April 10 at 04:45 GMT to say in the title that the pair is trading near 1.2850 after recovering recent losses rather than falling to that level.)

Pound Sterling FAQs

What is the Pound Sterling?

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

How do the decisions of the Bank of England impact on the Pound Sterling?

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

How does economic data influence the value of the Pound?

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

How does the Trade Balance impact the Pound?

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

BRANDED CONTENT

Choosing a broker that aligns with your trading needs can significantly impact performance. Our list of the best regulated brokers highlights the best options for seamless and cost-effective trading.

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

GBP/USD holds near 1.3300 amid pre-Fed market caution

GBP/USD corrects higher following the bearish action seen in the early European session and holds steady at around 1.3300 on Tuesday. The pair struggles to gather recovery momentum as the US Dollar (USD) benefits from the cautious stance ahead of the two-day US Federal Reserve monetary policy meeting.

EUR/USD rebounds from monthly low, stays below 1.1400

EUR/USD manages to pull away from the one-month low it set near 1.1350 but remains well below 1.1400 on Tuesday. The uncertainty surrounding the US-Iran conflict weighs on risk mood and limits the pair's upside, while investors refrain from taking large positions ahead of the highly anticipated Fed meeting.

Gold closes in on $4,000 ahead of FOMC decision

Gold (XAU/USD) maintains its offered on Tuesday and declines toward the $4,000 psychological level. This follows the previous day's failure to find acceptance above the $4,100 mark and suggests that the path of least resistance for the bullion remains to the downside amid a bullish US Dollar (USD), which draws support from escalating geopolitical tensions ahead of the cricital FOMC meeting.

Bitcoin slips below $64,000 as risk-off sentiment grips markets

Bitcoin (BTC) is extending its correction, trading below $64,000 at the time of writing on Tuesday after losses of over 2.5% the previous day. Institutional demand shows early signs of weakness, with spot Exchange Traded Funds (ETFs) recording a mild outflow on Monday, marking three consecutive days of withdrawals.

Indian Rupee outlook: Downtrend set to persist – Just at a slower pace

The Indian Rupee just endured its most brutal six-month stretch in years, battered by a perfect storm of global shocks. From United States (US)-India trade uncertainty to surging Oil prices and the significant outflow of Foreign Institutional Investment (FII) from the Indian stock market, every event brought nothing but pain for the Indian currency.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.