Pound Sterling Price News and Forecast: GBP trades with caution ahead of UK monthly GDP data

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British Pound trades with caution ahead of UK monthly GDP data

The British Pound (GBP) trades cautiously against its major currency peers during the European trading session on Thursday, down 0.1% to near 1.3350 against the US Dollar (USD). The British currency is marginally down ahead of the United Kingdom (UK) monthly Gross Domestic Product (GDP) data for April, which will be released on Friday.

The Office for National Statistics (ONS) is expected to report that the GDP growth contracted by 0.1% after expanding 0.3% in March. The scenario of UK economic contraction would undermine expectations of Bank of England (BoE) interest rate hikes despite inflationary pressures remaining higher in the wake of elevated energy prices. Read more...

GBP/USD Price Forecast: Eyes 1.3400 amid modest USD weakness; remains below weekly top

The GBP/USD pair attracts some dip-buyers during the Asian session on Tuesday and stalls the previous day's pullback from the 1.3425 region, or the weekly high. Spot prices currently trade around the 1.3385 zone, up just over 0.10% for the day, though the upside potential seems limited.

The US Dollar (USD) edges lower as soft US Core Consumer Price Index (CPI) eased concerns about a runaway inflation spiral and turned out to be a key factor acting as a tailwind for the GBP/USD pair. Traders, however, are still pricing in a 70% chance that the US Federal Reserve (Fed) will hike interest rates by the end of this year. Apart from this, renewed hostilities between the US and Iran help limit deeper USD losses, capping the upside for the currency pair. Read more...

British Pound nudges higher above 1.3350 despite rising Fed hike bets

The GBP/USD pair gathers strength to around 1.3385 during the Asian trading hours on Thursday. However, the potential upside might be limited amid rising expectations for higher-for-longer US interest rates. Markets might turn cautious later in the day ahead of the US Producer Price Index (PPI) report.

A combination of robust labor and hot inflation reports from the US has reinforced a "higher for longer" stance from the Fed, which could lift the US Dollar (USD) and act as a headwind for the major pair. Read more...

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