Pound Sterling Price News and Forecast: GBP/USD appreciates as the US Dollar loses ground amid lower yields

FXStreet Team FXStreet

GBP/USD rises above 1.2900 as US yields decline, Q4 GDP Annualized report eyed

GBP/USD recovers its recent losses from the previous session, climbing to around 1.2910 during Thursday’s Asian session. The pair is strengthening as the US Dollar (USD) remains under pressure due to declining Treasury yields, with the 2-year and 10-year yields hovering at 4.0% and 4.34%, respectively. Market participants are closely monitoring upcoming US economic data, including weekly Initial Jobless Claims and the final Q4 Gross Domestic Product (GDP) Annualized report, set for release later in the day.

However, the upside of the GBP/USD pair could be limited as risk-off sentiment rises amid escalating US trade policies. Late Wednesday, US President Donald Trump signed an order imposing a 25% tariff on auto imports, set to take effect on April 2, with collections beginning the following day. However, a one-month reprieve will be granted for auto parts imports. The move has intensified global trade tensions, adding uncertainty to the markets. Read more...

GBP/USD backslides as market sentiment sours

GBP/USD sewered on Wednesday, tumbling six-tenths of a percent top-to-bottom and pushed back below the 1.2900 handle as market sentiment recoils from a fresh batch of tariff threats from US President Donald Trump. Economic suddenly means very little as the Trump administration gears up to spark a them-vs-everybody trade war on April 2.

Policymakers have warned that the Trump administration’s long-winded trade war aspirations are beginning to hurt the US's economic prospects. Red flags are also being raised by key financial agencies: according to the Standard & Poor’s (S&P) Global ratings contingent, there is a 25% probability of a US recession kicking off within the next year. S&P Global specifically highlighted that “US policy uncertainty poses risks to North American credit conditions”. Read more...

GBP/USD slides below 1.29 on soft UK CPI, budget presentation

The Pound Sterling (GBP) depreciates against the US Dollar (USD) on Wednesday as United Kingdom (UK) inflation came in softer than expected, while investors scrutinized the Spring Budget. Across the pond, mixed US economic data lent a lifeline to the Greenback, which pared losses versus the British pound. GBP/USD is trading at 1.2895, down 0.36%.

The UK’s inflation rate dipped below estimates, with headline figures rising 2.8% year-over-year (YoY) in February, compared to 3% in January. The Core CPI for the same period decreased by two-tenths, from 3.7% to 3.5% YoY, also below forecasts of 3.6%. Read more...

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EUR/USD pops to yearly highs near 1.1770

EUR/USD rapidly reverses course and hits fresh YTD tops near 1.1780 at the end of the week. The pair’s U-turn comes on the back of the intense sell-off in the Greenback amid the generalised risk-on context.

GBP/USD climbs to four-month tops near 1.3600

GBP/USD is building on its solid weekly advance and is pushing toward the 1.3600 hurdle on Friday, or new four-month peaks. Cable’s strong move higher comes as the Greenback intensifies its decline, while auspicious results on the UK calendar also collaborate with the uptrend.

Gold picks up pace, approaches $5,000

Gold prices keep their uptrend well in place and gear up for an imminent hit to the key $5,000 mark per troy ounce on Friday. The yellow metal’s sharp advance gathers pace amid the increasing weakness in the US Dollar and mixed US Treasury yields across the curve.