Pound Sterling Price News and Forecast: GBP/USD attracts bids near 20-day EMA

FXStreet Team FXStreet

GBP/USD Price Forecast: Attracts bids near 20-day EMA as US Dollar corrects

The GBP/USD pair recovers its early losses and turns positive around 1.3490 during the European trading session on Friday. The Cable gains as the US Dollar (USD) corrects after a three-day winning streak. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.1% lower to near 98.70.

The US Dollar comes under pressure ahead of the United States (US) markets opening; however, the broader outlook of the currency remains firm as oil prices remain higher amid fears of a prolonged closure of the Strait of Hormuz, a critical passage to almost 20% of global energy supply. Read more...

GBP/USD Price Forecast: Bulls seem hesitant as US-Iran tensions counter Fed-BoE divergence

The GBP/USD pair edges higher during the first half of the European session on Friday and recovers a part of the previous day's losses to levels just below mid-1.3400s, or a nearly two-week trough. The US Dollar (USD) pauses following a three-day move up as bulls await further developments surrounding the US-Iran saga. This, in turn, acts as a tailwind for the currency pair, although a mixed fundamental backdrop warrants caution before confirming that the recent pullback from the 1.3600 mark, or over a two-month high touched last week, has run its course.

Despite a temporary extension of the US-Iran ceasefire, investors remain on edge amid the lack of progress in peace talks due to the instability around the critical Strait of Hormuz. US President Donald Trump ordered the US Navy to shoot and kill any boat laying mines in the critical shipping channel. Furthermore, Iran has set the complete removal of the US naval blockade as a strict precondition for resuming negotiations. This dampens hopes for a durable de-escalation and keeps geopolitical risks in play, underpinning safe-haven USD and capping the GBP/USD pair. Read more...

Author

FXStreet Team

FXStreet

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.

USD/JPY stays below 160.50 as markets assess BoJ decision

USD/JPY fluctuates in a relatively narrow range above 160.00 on Tuesday as markets assess the Bank of Japan's (BoJ) decision to raise the policy rate by 25 at the June meeting. Meanwhile, investors keep a close eye on news coming out of the Middle East, while preparing for the critical Fed meeting.

AUD/USD trades in tight channel near 0.7050 despite hawkish RBA message

AUD/USD trades modestly lower on the day at around 0.7050 on Tuesday as markets adopt a cautious stance amid a lack of details surrounding the US-Iran peace agreement. The Reserve Bank of Australia (RBA) left the door open for possible policy tightening after leaving the interest rate unchanged, as expected, at the June meeting but failed to boost the Australian Dollar.

Gold: $4,000 or $4,500? The Fed may decide Gold’s next big move

Gold now surrenders part of its initial advance and recedes to the vicinity of the $4,350 mark per troy ounce on Tuesday. The early enthusiasm sparked by the US-Iran peace deal has faded somewhat, prompting investors to adopt a more prudent stance as they await further details of the agreement and key guidance from the Fed.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it.

BoJ just hiked and US-Iran deal is on the table: Why Japanese Yen is still around 160.00

The Bank of Japan lifted interest rates from 0.75% to 1.00%, its highest level in more than three decades. The landmark move aims to stabilize a sharply weakening Japanese Yen, but by looking at the immediate market reaction, it doesn’t look like it’s going to work.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.