Pound Sterling Price News and Forecast: GBP trades with caution

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Pound Sterling trades with caution as traders price in BoE interest rate cut next month

The Pound Sterling (GBP) trades cautiously against its major peers on Thursday as the higher-than-expected United Kingdom (UK) Public Sector Net Borrowing in December has weighed on the economic outlook. The Office for National Statistics (ONS) reported on Wednesday that higher borrowing costs and a one-off payment for the repurchase of military accommodation swelled the budget deficit. This scenario could force Chancellor of the Exchequer Rachel Reeves to raise the tax burden on individuals or trim public spending, which could slow down the already moderate growth rate in the UK.

UK government’s borrowing costs have accelerated lately amid concerns that higher tariffs by United States (US) President Donald Trump would dampen growth prospects. This led to a sharp increase in 30-year gilt yields to 5.47% on January 14, the highest level seen in over 26 years. Read more...

GBP/USD Forecast: Pound Sterling loses strength after failing to clear technical hurdle

GBP/USD climbed to a two-week-high near 1.2380 in the European session on Wednesday but lost its traction to close the day marginally lower. The pair edges lower toward 1.2300 in the European morning on Thursday and the technical outlook highlights a loss of bullish momentum in the near term.

The US Dollar (USD) came under bearish pressure in the first half of the day on Wednesday as risk flows dominated the action in financial markets. Although Wall Street's main indexes opened higher, rising US Treasury bond yields helped the USD hold its ground in the American session. Read more...

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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD remains depressed below 1.3400 amid escalating US-Iran tensions

The GBP/USD pair finds some support near 1.3370 after a modest gap-down opening, though it lacks bullish conviction and remains below 1.3400. Nevertheless, spot prices, for now, seem to have stalled the pullback from a nearly four-week high, around the 1.3450 area, touched on Friday amid mixed fundamental cues.

EUR/USD: Flag breakdown supports more downside towards 1.1325

The Euro holds opening losses at around 1.1390 against the US Dollar during the mid-Asian trading session on Monday. The major currency pair faces selling pressure as the US Dollar starts the week on a strong note due to an increase in the appeal of safe-haven assets.

Gold seems vulnerable amid Iran risks reviving inflation fears, Fed hike bets

Gold maintains its offered tone through the Asian session, and currently trades just above $4,050, down nearly 1.40% for the day. A further escalation of tensions between the US and Iran, along with the closure of the Strait of Hormuz, lifts crude oil prices and revives inflation fears. This, in turn, bolsters expectations of higher interest rates by the US Federal Reserve, which benefits the safe-haven US Dollar, and drives flows away from the bullion.

Cardano: Ongoing whale accumulation fails to halt downward correction

Cardano (ADA) extends its losses, trading below $$0.160 after falling over 14% in the previous week. Despite on-chain data showing continued accumulation by whales, the buying activity has failed to lift prices. Meanwhile, bearish derivatives metrics and a weakening technical outlook indicate further downside for ADA.

Week ahead – US CPI and Warsh testimony to take centre stage, BoC eyed too

It’s been more than a month since Kevin Warsh took over as head of the Federal Reserve but after one FOMC meeting and two public appearances later, investors are still trying to gauge where the new chair sits on the dove-hawk scale.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.