Pound Sterling Price News and Forecast: GBP declines on rising UK fiscal worries

FXStreet Team FXStreet

Pound Sterling declines on rising UK fiscal worries, Fed Daly's speech eyed

The Pound Sterling (GBP) tumbles against its major peers on Friday as long-dated United Kingdom (UK) gilt yields gain sharply amid soaring public sector borrowings in August. 30-year UK gilt yields jump over 1% to near 5.50%.

The data showed that Public sector net borrowing hit £18 billion, the highest for the month in five years. Economists expected government borrowing to come in significantly lower at £12.8 billion. Read more...

GBP/USD Price Forecast: Seems vulnerable amid BoE’s dovish pause, firmer USD

The GBP/USD pair prolongs this week's retracement slide from its highest since early July for the third straight day and slides below the 1.3500 psychological mark, or a two-week trough during the early European session on Friday. The US Dollar (USD) sticks to its post-FOMC strong recovery gains from a three-and-a-half-year low. Furthermore, the Bank of England's (BoE) dovish outlook contributes to the British Pound's (GBP) underperformance and exerts additional pressure on the currency pair.

A hawkish assessment of Federal Reserve (Fed) Chair Jerome Powell's remarks on Wednesday remains supportive of the USD move up for the third straight day. The US central bank, as was anticipated, lowered borrowing costs by 25 basis points (bps) for the first time since December 2024 and indicated that more interest rate cuts would follow by the year-end amid the softening labor market. 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 rebounds after falling toward 1.1700

EUR/USD gains traction and trades above 1.1730 in the American session, looking to end the week virtually unchanged. The bullish opening in Wall Street makes it difficult for the US Dollar to preserve its recovery momentum and helps the pair rebound heading into the weekend.

GBP/USD steadies below 1.3400 as traders assess BoE policy outlook

Following Thursday's volatile session, GBP/USD moves sideways below 1.3400 on Friday. Investors reassess the Bank of England's policy oıtlook after the MPC decided to cut the interest rate by 25 bps by a slim margin. Meanwhile, the improving risk mood helps the pair hold its ground.

Gold stays below $4,350, looks to post small weekly gains

Gold struggles to gather recovery momentum and stays below $4,350 in the second half of the day on Friday, as the benchmark 10-year US Treasury bond yield edges higher. Nevertheless, the precious metal remains on track to end the week with modest gains as markets gear up for the holiday season.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

How much can one month of soft inflation change the Fed’s mind?

One month of softer inflation data is rarely enough to shift Federal Reserve policy on its own, but in a market highly sensitive to every data point, even a single reading can reshape expectations. November’s inflation report offered a welcome sign of cooling price pressures.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.