Pound Sterling Price News and Forecast: Flat near 1.3450 as softer US CPI revives Fed cut bets

EUR/USD’s selling pressure now picks up pace, trimming part of its post-US CPI gains and drifting back toward the 1.1640 area on turnaround Tuesday. Meanwhile, the US Dollar edges higher as markets continue to digest December’s US inflation data.

GBP/USD now comes under extra downside pressure, drifting lower toward the area of daily troughs around 1.3430 on Tuesday. Cable’s pullback mirrors the soft tone in the risk complex, all in response to the better tone in the Greenback in the wake of December’s US CPI release.

Gold shrugs off early gains to fresh record highs above $4,630 per ounce on Tuesday, and returns to the vicinity of the $4,600 region amid further improvement in the US Dollar and declining US Treasury yields following the release of US CPI data.

The segment of privacy coins outperforms the broader cryptocurrency market, with a roughly 290% rise in 2025. The rising user count on the cryptocurrency tumbler Tornado Cash amid regulatory pushes, such as the 2025 GENIUS Act, reflects a surge in demand for privacy.

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank. 

Ripple (XRP) is trading sideways above support at $2.00 at the time of writing on Tuesday. Recovery has remained elusive despite steady inflows into spot Exchange Traded Funds (ETFs), which have cumulatively attracted $1.23 billion.