GBP/USD to reach 1.26 at year-end – ANZ

FXStreet Insights Team FXStreet

GBP/USD remained in a range of 1.19-1.24 in the first quarter of 2023. Economists at ANZ Bank expect the pair to edge higher toward 1.26 by the end of the year.

Higher interest rates are expected to be a feature of BoE meetings ahead

“While a recession may be avoided, UK inflation remains at multi-decade highs. Headline CPI in March was reported at 10.4%, with core CPI at 6.2%. Therefore, higher interest rates are expected to be a feature of BoE meetings ahead.”

“We think there is further upside and forecast GBP/USD to rise to 1.26 at end-2023.”

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.

GBP/USD holds gains above 1.3150, US PCE inflation data looms

The GBP/USD pair recovers some lost ground to near 1.3175 during the Asian trading hours on Thursday. However, the potential upside for the major pair might be limited amid UK political instability and rising expectations of US interest rate hikes this year. Traders await the US May Personal Consumption Expenditures inflation data on Thursday for fresh impetus.

EUR/USD rebounds above 1.1350, but outlook stays bearish below key resistance

The EUR/USD pair trades in positive territory around 1.1370. A surprisingly hawkish message from Kevin Warsh as the new Federal Reserve chair last week has traders pricing a US hike as soon as September. Markets might turn cautious later in the day ahead of the key US Personal Consumption Expenditures report.

Gold bounces off November 2025 lows as USD rally pauses ahead of US PCE

Gold rebounds from the vicinity of the lowest level since November 2025, set the previous day, and trades near the $4,000 psychological mark. A modest US Dollar downtick offers some support to the commodity amid some repositioning trade ahead of the release of the US Personal Consumption Expenditures Price Index.

Bitcoin tests $60,000 as whales sell off – Aave and Jupiter show resilience

The broader cryptocurrency market remains under intense selling pressure, with Bitcoin back at $60,000 for the third time this year. On-chain data shows selling pressure from large-wallet investors, commonly referred to as whales, while total liquidations hit nearly $1 billion in 24 hours.

Ripple and SBI Group partner to launch RLUSD in Japan

Ripple (XRP) remains under pressure, trading at $1.06 on Thursday after losing nearly 5% so far this week. Ripple and SBI Group partnered to launch RLUSD stablecoin in Japan following approval from the Japan Financial Services Agency on Thursday, but the move failed to lift sentiment.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.