Pound Sterling Price News and Forecast: GBP/USD attracts some dip-buying at the start of a new week

FXStreet Team FXStreet

GBP/USD Price Forecast: Sticks to negative bias below 1.3600 as Iran tensions underpin USD

The GBP/USD pair struggles to capitalize on its modest intraday bounce and remains below the 1.3600 mark through the Asian session on Monday amid the emergence of some US Dollar (USD) buying. The recent optimism over a potential US-Iran peace deal faded rather quickly in the wake of renewed hostilities in the Strait of Hormuz and major disagreements over Tehran's nuclear program. This, along with reviving hawkish US Federal Reserve (Fed) expectations, revives the USD demand and keeps a lid on the GBP/USD pair rebound from the 1.3550-1.3545 region.

However, the Bank of England's (BoE) signal that rate hikes could be appropriate if inflation remains persistent, along with easing concerns over UK Prime Minister Keir Starmer’s position, act as a tailwind for the British Pound (GBP). This continues to act as a tailwind for the GBP/USD pair and warrants some caution before positioning for any meaningful downfall. From a technical perspective, spot prices hold above the 100-period Exponential Moving Average (EMA), suggesting a mildly constructive near-term bias. That said, momentum indicators are mixed, with the Relative Strength Index (RSI) hovering near the neutral 50 line and the Moving Average Convergence Divergence (MACD) slipping marginally back below zero. Read more...

British Pound pares intraday losses; bulls seem hesitant near 1.3600 on firmer USD

The GBP/USD pair rebounds nearly 50 pips following a bearish gap opening at the start of a new week and climbs back to the 1.3600 mark during the Asian session. However, a modest US Dollar (USD) strength might cap any further gains for spot prices. US President Donald Trump and Iran both rejected each other’s peace proposals for ending the war and the gradual reopening of the Strait of Hormuz amid major disagreements over Iran's nuclear program. This comes on top of renewed hostilities and keeps geopolitical risks in play, which, in turn, assists the safe-haven Greenback to attracts some buyers and should keep a lid on the GBP/USD pair.

Meanwhile, the latest developments trigger a fresh leg up in Crude Oil prices and revive inflationary concerns. Adding to this, Friday's upbeat US Nonfarm Payrolls (NFP) report backs the case for the US Federal Reserve (Fed) to stick to its hawkish stance and remains supportive of elevated US Treasury bond yields. This lends additional support to the USD, and warrants caution for the GBP/USD bulls. 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.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains weak, retargets $4,350

Gold keeps the choppy price action on Thursday, now slipping back toward the $4,350 region per troy ounce amid the robust bounce in the US Dollar as well as rising US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

XRP slides amid a fragile crypto market structure

Ripple (XRP) falls for the second straight day, trading at $1.37 on Thursday. The broader cryptocurrency market remains fragile as investors weigh the impact of geopolitical tensions in the Middle East, which triggered persistent increases in Crude Oil prices while restricting shipping through the Straight of Hormuz and the Red Sea.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.