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 deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.