Pound Sterling Price News and Forecast: GBP gains as Ukraine peace plan increases investors' risk appetite

FXStreet Team FXStreet

Pound Sterling gains as Ukraine peace plan increases investors' risk appetite

The Pound Sterling (GBP) trades higher against its major peers, except the Euro, at the start of the week due to a potential Russia-Ukraine peace truce. Over the weekend, United Kingdom (UK) Prime Minister Keir Starmer said European leaders agreed to present a peace plan to Washington. The meeting between European leaders and Starmer was also attended by Ukrainian President Volodymyr Zelenskyy, potentially a big positive step towards ending the three-year-long war in Ukraine. Technically, signs of easing geopolitical tensions improve demand for risky assets.

Additionally, firm expectations that the Bank of England (BoE) will follow a moderate policy-easing cycle and a likely healthy trade deal between the US and the UK have kept the British currency on the frontfoot. On Friday, BoE Deputy Governor Dave Ramsden said that the central bank should keep a “careful and gradual” approach to the monetary policy expansion amid uncertainty over the labor market and global trade. Read more...

GBP/USD Forecast: Pound Sterling not out of the woods yet

GBP/USD registered daily losses on Thursday and Friday to end the previous week in negative territory. The pair holds steady at around 1.2600 in the European morning on Monday.

The broad-based US Dollar (USD) strength in the second half of last week caused GPB/USD to stretch lower. US President Donald Trump's confirmation of March 4th as the date for 25% tariffs on Canadian and Mexican imports, as well as an additional 10% tariff on Chinese goods, to go into effect, combined with his argument with Ukrainian President Volodymyr Zelenskyy in the Oval Office on Friday forced investors to stay away from risk-sensitive assets heading into the weekend. Read more...

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FXStreet Team

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