Pound Sterling Price News and Forecast: GBP corrects against US Dollar amid Iran-Israel conflict

FXStreet Team FXStreet

Pound Sterling corrects sharply against US Dollar amid Iran-Israel conflict

The Pound Sterling (GBP) underperforms against its major peers on Friday, except for antipodean currencies, as market sentiment turns risk-averse amid escalating geopolitical tensions in the Middle East.

Israel has announced a war against Iran after striking dozens of targets in the northeast region of Tehran, including nuclear facilities and military bases. Israeli Prime Minister Benjamin Netanyahu has clarified that their military has started the “Operation Rising Lion” to stop Iran from building nuclear warheads, citing that the operation aims to “roll back the Iranian threat to Israel’s very survival”. Read more...

GBP/USD Forecast: Pound Sterling loses bullish momentum on escalating geopolitical tensions

GBP/USD declines sharply and trades below 1.3550 in the European session on Friday after posting its highest daily close since February 2022 on Thursday. The risk-averse market environment could make it difficult for the pair to regain its traction heading into the weekend.

The broad-based selling pressure surrounding the US Dollar (USD) allowed GBP/USD to gather bullish momentum on Thursday. After suffering large losses against its major rivals on weaker-than-expected Consumer Price Index (CPI) figures on Wednesday, the USD continued to weaken on Thursday as the data published by the Department of Labor showed that there were 248,000 Initial Jobless Claims in the week ending June 7, compared to the market forecast of 240,000. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD recovers to 1.1750 region as 2025 draws to a close

Following the bearish action seen in the European session on Wednesday, EUR/USD regains its traction and recovery to the 1.1750 region. Nevertheless, the pair's volatility remains low as trading conditions thin out on the last day of the year.

GBP/USD stays weak near 1.3450 on modest USD recovery

GBP/USD remains under modest beairsh pressure and fluctuates at around 1.3450 on Wednesday. The US Dollar finds fresh demand due to the end-of-the-year position adjustments, weighing on the pair amid the pre-New Year trading lull.

Gold retreats to $4,300 area, looks to post monthly gains

Gold stays on the back foot on the last day of 2025 and trades near $4,300, possibly pressured by profit-taking and position adjustments. Nevertheless, XAU/USD remains on track to post gains for December and extend its winning streak into a fifth consecutive month.

Bitcoin, Ethereum and XRP prepare for a potential New Year rebound

Bitcoin, Ethereum, and Ripple are holding steady on Wednesday after recording minor gains on the previous day. Technically, Bitcoin could extend gains within a triangle pattern while Ethereum and Ripple face critical overhead resistance.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).