Pound Sterling Price News and Forecast: GBP trades calm at the start of thin volume year-end week
Pound Sterling trades calm at the start of thin volume year-end week
The Pound Sterling (GBP) trades calmly against its major peers at the start of the last week of 2025, holding steady around 1.3500 against the US Dollar (USD). The British currency remains broadly firm as investors expect the Bank of England (BoE) to follow a moderate monetary easing cycle in 2026.
The BoE is unlikely to cut interest rates aggressively next year as inflation in the United Kingdom (UK) is still well above the central bank’s 2% target, despite slowing down in the past few months. Inflation decelerated to 3.2% YoY in November after peaking at 3.8% in the July-September period. Read more...
GBP/USD: UK GDP growth matches forecasts
The latest UK GDP data showed annualised growth of 1.3%, in line with market expectations and slightly below the previous reading of 1.4%. The report had a broadly neutral impact on sterling, as it confirms the UK economy continues to expand, albeit at a moderate pace, without signs of acceleration.
For the GBP/USD pair, the lack of surprise is the key takeaway. With the data matching consensus forecasts, investors have little reason to reassess their current macroeconomic outlook. In such cases, the pound tends not to attract fresh buying momentum but also avoids sharp selling pressure. Read more...
Author
FXStreet Team
FXStreet
