Pound Sterling Price News and Forecast: GBP below 1.3300 ahead of Fed, BoE

FXStreet Team FXStreet

British Pound languishes below 1.3300 heading into Fed and BoE decisions

The British Pound (GBP) has given away previous gains against the US Dollar (USD) on Wednesday and remains practically flat in the daily chart, trading below 1.3300 and on track to complete a nearly 1.20% decline over the last two weeks. Growing concerns about UK PM Burnham’s welfare reforms and an adverse monetary policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) are hammering the Pound ahead of key monetary policy decisions.

In a few hours, the Fed will likely stand pat on rates, although markets foresee a one-in-three chance of a quarter-point hike. A surprise rate hike would probably send the US Dollar rallying across the board, but the most likely outcome, a pause keeping the door open for a hike in September, will still highlight a more hawkish stance than the BoE and underpin the pair’s bearish bias. Read more...

GBP/USD at month’s lows: The outlook remains weak

GBP/USD continued to consolidate at 1.3283 on Wednesday. The British pound hit a near one-month low in the previous session as investors monitored developments in the Middle East, while the dollar drew support from expectations that the Federal Reserve could raise rates today.

The suspension of US strikes on Iran contributed to a decline in oil prices and somewhat eased inflationary risks. However, US government bond yields fell only modestly, reflecting cautious market sentiment. Read more...

GBP/USD Price Forecast: Near-term bias remains bearish ahead of Fed-BoE policy

The British Pound (GBP) is marginally higher at around 1.3300 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair edges up as the US Dollar ticks lower ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT.

In the European session, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally lower to near 101.30. Read more...

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GBP/USD remains flattish around 1.3300

GBP/USD alternates gains with losses near the 1.3300 threshold on Wednesday. Indeed, Cable struggles to gain traction as the Greenback remains resilient ahead of the Fed gathering later in the day. Moving forward, the British Pound should remain under the microscope in light of the BoE meeting on Thursday.

EUR/USD treads water below 1.1400; focus is on the Fed

EUR/USD trades in a tight range below 1.1400 on Wednesday as the US Dollar (USD) benefits from risk aversion amid the deepening crisis in the Middle East. Investors refrain from taking large positions ahead of the Fed’s policy decision, which could provide fresh directional impetus for spot.

Gold recedes to multi-day troughs below $4,000

Gold remains on the back foot on Wednesday, breaching below the psychological $4,000 level per troy ounce despite the US Dollar’s lack of direction. Escalating tensions in the US-Iran conflict weigh on the precious metal, while investors await the FOMC event later in the day.

Bitcoin slips below support, Ethereum and XRP flash bearish signals

Bitcoin, Ethereum and Ripple remain under pressure on Wednesday after a mild correction earlier this week. BTC slips below a key support zone, and ETH is testing a key resistance zone. Meanwhile, XRP is drifting toward the psychologically important $1.00 support level.

Federal Reserve set to hold interest rates steady, yet a hike can’t be ruled out

The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday, another pivotal meeting for markets to gauge the stance of policymakers as they assess how rising crude Oil prices could impact the inflation outlook.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.