Pound Sterling Price News and Forecast: GBP gains on US-UK trade deal

FXStreet Team FXStreet

Pound Sterling gains on US-UK trade deal, BoE's gradual easing guidance

The Pound Sterling (GBP) outperforms its peers, except the Japanese Yen (JPY), on Friday. The British currency capitalizes on the announcement of the trade deal between the United States (US) and the United Kingdom (UK) the previous day, and the Bank of England (BoE) interest rate cut decision, with a 7-2 vote split.

The BoE lowered interest rates by 25 basis points (bps) to 4.25%, as expected, marking the fourth rate cut in the current monetary expansion cycle. BoE Monetary Policy Committee (MPC) member Catherine Mann and Chief Economist Huw Pill favored leaving interest rates unchanged, while investors expected all MPC members to vote for an interest rate reduction. Out of seven MPC members who supported monetary policy easing, two officials, Swati Dhingra and Alan Taylor, backed a bigger reduction of 50 bps. Read more...

GBP/USD Forecast: Pound Sterling stays below key resistance levels

Following a two-day slide, GBP/USD dropped toward 1.3200 early Friday and touched a fresh multi-week low before regaining its traction. The pair trades above 1.3250 in the European session but remains below key technical resistance levels.

The Bank of England (BoE) announced on Thursday that it cut the policy rate by 25 basis points (bps) to 4.25%, as widely anticipated. Unexpectedly, two policymakers voted in favor of holding the policy rate unchanged, while two others voted for a 50 bps cut. Meanwhile, the BoE noted in its policy statement that a gradual and careful approach to further withdrawal of monetary policy restraint remains appropriate. 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 moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

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.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.