Pound Sterling Price News and Forecast: GBP underperforms USD ahead of Fed’s policy decision

FXStreet Team FXStreet

Pound Sterling underperforms USD ahead of Fed’s policy decision

The Pound Sterling (GBP) falls slightly to near 1.2400 against the US Dollar (USD) in Wednesday’s European session. The GBP/USD pair drops as the US Dollar recovers ahead of the Federal Reserve’s (Fed) monetary policy decision, which will be announced at 19:00 GMT. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, bounces back to near 108.00.

Traders are confident that the Fed will announce a pause in the current policy easing spell and keep interest rates unchanged in the range of 4.25%-4.50%, according to the CME FedWatch tool. In the last three policy meetings, the Fed has reduced its key borrowing rates by 100 basis points (bps). Read more...

GBP/USD Forecast: Pivot level forms at 1.2450, eyes on Fed

After snapping a three-day winning streak on Tuesday, GBP/USD stays in a consolidation phase at around 1.2450 in the European session on Wednesday. Investors are likely to refrain from taking large positions ahead of the Federal Reserve's (Fed) monetary policy announcements.

The negative shift seen in risk mood helped the US Dollar (USD) outperform its rivals and forced GBP/USD to stay on the back foot on Tuesday. Investors remain anxious about the uncertainty surrounding the Trump administration's trade policy. While speaking to reporters late Tuesday, US President Donald Trump's press secretary Karoline Leavitt said that the plan to impose Canada and Mexico with punishing tariffs on February 1 was still in play. Read more...

Author

FXStreet Team

FXStreet

EUR/USD looks to stabilize near 1.1600 as focus shifts to US data

EUR/USD is looking to stabilize near 1.1600 in the European session on Wednesday as traders breathe a sigh of relief before the top-tier US ADP jobs and ISM Services PMI data. A pause in the US Dollar uptrend helps the pair's recovery, but surging energy prices due to the Iran war will likely remain a drag.

GBP/USD stays weak near 1.3350 as USD preserves gains

GBP/USD stays in the red below 1.3350 in the European session on Wednesday. Escalating conflict in the Middle East keeps the "flight to safety" theme intact, supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold retains positive bias amid sustained safe-haven flows and modest USD pullback

Gold maintains its offered tone through the first half of the European session, though it lacks follow-through and remains below the $5,200 mark. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.