Pound Sterling capitalizes on cheerful market mood, US Inflation in focus

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling could face strong resistance at 1.2670

GBP/USD closed the first trading day of the week marginally higher but struggled to gather recovery momentum on Tuesday. As trading action turns subdued ahead of Wednesday's key inflation data from the US, the pair could have a difficult time making a decisive move in either direction. Read more...

Pound Sterling capitalizes on cheerful market mood, US Inflation in focus

The Pound Sterling (GBP) moves higher against the US Dollar in Tuesday’s late London session. The GBP/USD pair gains as market mood remains risk-on despite uncertainty ahead of the United States Consumer Price Index (CPI) data for March, which will be published on Wednesday. The economic data will likely provide some clues about when the Federal Reserve (Fed) could start reducing interest rates. Read more...

GBP/USD clings to 1.2650 amid improved risk appetite, awaits US CPI

GBP/USD holds ground in the positive territory, hovering around 1.2650 during the Asian session on Tuesday. The pair gained ground on improved risk appetite ahead of Consumer Price Index data scheduled on Wednesday. Read more...

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AUD/USD flatlines below 0.7050 as bulls await RBA rate decision on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY advances to 157.75 as BoJ uncertainty weighs on the JPY

USD/JPY regains positive traction during the Asians session on Monday, building on Friday's bounce from sub-157.00 levels as the uncertainty over the timing of the next BoJ rate hike undermines the Japanese Yen. Meanwhile, hopes for Middle East diplomacy cap the safe-haven US Dollar and the currency pair amid speculation that authorities will step in to support the Japanese Yen.

Gold struggles to build on recovery from one-year low beyond $3,900

Gold kicks off the week on a positive note, recovering slightly from its lowest level since October 2025, touched on Friday, as hopes for Iran diplomacy cap the US Dollar. However, Fed rate-hike bets keep a lid on the non-yielding bullion as focus shifts to key US macro releases scheduled at the start of the new month, including the ISM Manufacturing later today and the NFP report on Friday.

Week ahead: Nonfarm Payrolls and US midterm elections take center stage

The US dollar traded higher against most of its peers this week, beginning the week on a solid footing amid expectations of a hawkish FOMC decision on Wednesday. Although market participants were convinced that a rate hike was off the table, they were on the lookout for clues and hints on whether they were correct in nearly fully pricing in a 25bps rate hike in December.

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.