Pound Sterling Price News and Forecast: GBP shows mix performance ahead of flash UK PMI data

FXStreet Team FXStreet

Pound Sterling shows mix performance ahead of flash UK PMI data

The Pound Sterling (GBP) demonstrates a mixed performance against its major peers on Tuesday as investors are cautious over how the Bank of England (BoE) will shape the monetary policy outlook under the threat of Trump’s international policies.

Traders have become increasingly confident that the BoE could cut interest rates in the May policy meeting amid ongoing global economic tensions. There is a great chance that the UK will have a trade deal with Washington after Trump's administration imposed 10% reciprocal tariffs and 25% levies on steel and foreign cars. However, the major threat to the UK is intense competition with other nations, assuming that Trump’s protectionist policies will force his trading partners to sell their products in other territories at lower prices. Read more...

GBP/USD Forecast: Buyers hesitate as Pound Sterling fails to stabilize above 1.3400

GBP/USD moves up and down in a tight range below 1.3400 after having set a fresh 2025-high above 1.3420 earlier in the day. The pair's near-term technical outlook suggests that the bullish stance remains unchanged but a break below 1.3340-1.3330 could discourage buyers.

The broad-based US Dollar (USD) weakness allowed GBP/USD to begin the week on a bullish note as investors reassessed the political threat to the Federal Reserve's (Fed) independence. Read more...

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