Pound Sterling Price News and Forecast: GBP gains traction on improving risk mood

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling gains traction on improving risk mood

After touching a fresh multi-month low near 1.2350 on Thursday, GBP/USD staged a technical correction and closed in positive territory on Friday. Early Monday, the pair benefits from improving risk mood and continues to stretch higher toward 1.2500.

Following a bearish start to the year, Wall Street's main indexes gathered bullish momentum and registered strong gains on Friday. Early Monday, US stock index futures trade in the green, making it hard for the US Dollar (USD) to hold its ground. Read more...

GBP/USD holds positive ground near 1.2450 on US Dollar bullish

The GBP/USD pair extends the recovery to near 1.2440 during the early European session on Monday. However, the potential upside seems limited amid the Federal Reserve's (Fed) hawkish stance. Later on Monday, investors await the Fed’s Governor Lisa Cook speech for more cues about the US interest rate outlook this year.

The US central bank has cut the interest rates by one percentage point since September 2024 and signaled slower rate cuts this year, which supports the US Dollar (USD) broadly. Over the weekend, the Fed officials reinforced the view that the Fed will take a more cautious approach to cutting interest rates this year. Fed policymakers warned the fight against inflation is still with them while also highlighting their need to protect job market stability. Read more...

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EUR/USD stays weak near 1.1650 ahead of critical US events

EUR/USD stays in the red near 1.1650 in the European trading hours on Friday. The pair remains undermined by broad US Dollar strength and a cautious market mood. Traders keenly await the US Nonfarm Payrolls data and Supreme Court's ruling on Trump's tariff powers for further direction.

GBP/USD holds lower ground below 1.3450, with eyes on US data

GBP/USD remains subdued for the fourth consecutive day, while trading below 1.3450 in the European session on Friday. Markets remain in a wait-and-see mode before the key US event risks and prefer to hold the US Dollar, which weighs negatively on the pair. The US monthly jobs data and the Supreme Court decision on tariffs are awaited.

Gold flat lines around $4,475; looks to US NFP report for fresh impetus

Gold reverses a modest intraday dip to the $4,453 area, and trades near the top end of its daily range heading into the European session. The upside, however, seems limited as traders might opt to wait for the US Nonfarm Payrolls report later today. The crucial employment details will be looked upon for more cues about the Federal Reserve's rate-cut path.

Nonfarm Payrolls expected to show US labor market remained weak in December

The United States Bureau of Labor Statistics will release the Nonfarm Payrolls data for December on Friday at 13:30 GMT. Economists expect Nonfarm Payrolls to rise by 60,000 in December following the 64,000 increase recorded in November.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

Pepe Price Forecast: PEPE risks 100-day EMA fallout as bullish interest fades

Pepe is under extreme selling pressure, trading in the red for the fifth consecutive day, down 1% at press time on Friday. Pepe’s decline following a 72% hike last week suggests a likely profit-booking phase, while on-chain data indicates declining network activity.