GBP/USD: Sterling is poorly position to seize any Fed-fueled rise

FXStreet Insights Team FXStreet

GBP/USD has advanced after the Fed remained dovish. Break above 1.40 in sight? Political uncertainty in Northern Ireland, PM Johnson's scandals and US GDP are eyed, Yohay Elam, an Analyst at FXStreet reports.

See: GBP/USD set to rally past the March high at 1.4018 – Commerzbank

Fundamentals show sterling gains have their limits

“The Federal Reserve stressed it is not about to taper down its bond buys anytime soon. More dollar printing means a weaker value for the greenback.”

“Thursday's first release of Gross Domestic Product figures for the first quarter are set to rock markets. If Monday's Durable Goods Orders statistics for March are a guide, the data may fall short of estimates – an annualized 6.5% expansion – and could further weigh on the greenback. However, nothing is certain.”

“Britain's successful vaccination campaign is already priced into sterling while new issues are still weighing on the currency. First, Prime Minister Boris Johnson remains under pressure after reportedly asking Conservative Party donors to pay for the renovation of his Downing Street residence. Brexit also refuses to go away. The EU and the UK are still stuck in negotiations for implementing what has been agreed upon. Resolving issues related to the services sector has a long way to go as well.”

“Resistance awaits at 1.3980, which is the fresh swing high. It is followed by 1.4010, April's peak. Support is at 1.3930, which held GBP/USD back earlier this week. It is followed by 1.3880 and 1.3860.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD softens below 1.1800 on Fed hawkish remarks

The EUR/USD pair edges lower to around 1.1775 during the early Asian session on Wednesday, pressured by a renewed US Dollar demand. Traders await the US President Donald Trump's State of the Union address later on Wednesday for clarity on fiscal policies.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold consolidates below $5,150 as traders await Trump's State of the Union address

Gold steadies below the $5,150 level following the previous day's pullback from the monthly peak as traders opt to wait on the sidelines ahead of Trump's State of the Union address. In the meantime, trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion. However, the Fed's less hawkish outlook underpins the US Dollar, which, along with a positive risk tone, caps the upside for the non-yielding yellow metal.

Hyperliquid registers mild gains following CoinShares' ETP launch

Hyperliquid registered a 3% gain on Tuesday after CoinShares announced the launch of its Physical Hyperliquid Staking exchange-traded product, offering investors exposure to the token's price and staking yields.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.