GBP/USD: Surprise vote split – OCBC

FXStreet Insights Team FXStreet

Pound Sterling (GBP) rose on BoE decision. GBP was last at 1.3440, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum shows tentative signs of turning mild bullish

"MPC delivered a 25bp cut to bring policy rate to 4%, as widely expected but vote outcome caught markets by surprise. A re-vote was required after the initial vote saw a 3-way split of 4 members voting for hold, 4 members voting for 25bp cut and 1 member voting for 50bp cut. Some members warned that higher food prices would drive inflation higher."

"BoE Deputy Governor Ramsden said that the nature of the persistence of inflation has surprised him. Governor Bailey said the path continues to be downwards but added that was now “genuine uncertainty” over the scope for further cuts because BoE was balancing risks of a sharper downturn in activity against the risk of inflation failing to ease as forecast. Markets are now only pricing in 70% chance of a 25bp cut by end-2025."

"Daily momentum shows tentative signs of turning mild bullish while the rise in RSI moderated. Next resistance at 1.35 levels (50 DMA). Support at 1.34 (21 DMA), 1.3360 (100 DMA) and 1.3140 (38.2% fibo retracement of 2025 low to high). We look for consolidation in 1.33 – 1.35 range."

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 climbs above 1.1600 on US–Iran peace breakthrough

The EUR/USD pair stays firm above 1.1600 in the European session on Monday. The US and Iran have reached a deal to reopen the Strait of Hormuz on Sunday, which underpins risk sentiment, supporting the Euro against the US Dollar. Now, the main focus this week remains on the Fed policy decision due on Wednesday.

GBP/USD: US-Iran reaches deal supporting advance beyond 20-day EMA

The GBP/USD pair trades 0.35% higher to near 1.3460 during the late Asian trading session. The Cable extends its week-long advance as market sentiment improves further, following the announcement that the United States and Iran have reached a deal.

Gold gains momentum as US, Iran announce a peace deal

Gold price rises to a weekly high during the early European trading hours on Monday. The precious metal rebounds after the United States and Iran had reached a deal to end their conflict, easing concerns about inflation and higher interest rates.

Bitcoin consolidates gains, Ethereum defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

President Trump announced that the deal with Iran is complete

President Trump announced that the deal with Iran is complete and he authorises the toll-free opening of the Strait of Hormuz and removal of the US Naval blockade. While the agreement is made, it is expected to be signed on Friday to take effect. The Forex market looks stable and could react slowly to the positivity around the news as Iran still expresses its mistrust on the US.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.