Pound Sterling Price News and Forecast: GBP/USD bears are still in control

FXStreet Team FXStreet

GBP/USD: UK imposes new restrictions and BoE may slow interest rate hikes

Pound sterling fell yesterday to a new yearly low of 1.3160 after Prime Minister Boris Johnson enacted a “Plan B” that includes advice to work from home and the use vaccination certificates for large-volume events. The announcement comes after the number of reported cases of Covid-19 this week rose to the highest since January, with 568 cases of the Omicron variant reported in the UK so far already. The resurgence of the virus ahead the December 16 meeting of the Bank of England (BoE) means there is a high possibility that the central bank will keep interest rates on hold. BoE policymaker Michael Saunders, who voted to raise interest rates at last month’s meeting, said on Friday he would like to wait for more information on the impact of the omicron strain before deciding to vote at next week’s meeting. Read more...

GBP/USD Outlook: Bears are still in control, await US CPI before the next leg down

The GBP/USD pair struggled to capitalize on the overnight bounce from a one-year low and oscillated in a narrow trading band, around the 1.3200 mark through the early European session, on Thursday. The imposition of tougher COVID-19 restrictions in England turned out to be a key factor that acted as a headwind for the British pound. The UK Prime Minister Boris Johnson ordered people to work from home on Wednesday, wear face masks in public places and use vaccine passes to slow the spread of the Omicron variant of the coronavirus. This, along with persistent Brexit-related uncertainties, forced investors to scale back their bets for an imminent interest rate hike by the Bank of England in December. Apart from this, a modest pickup in US dollar demand kept a lid on any meaningful upside for the major. Read more...

GBP/USD Price Analysis: Downside remains open towards 1.3100 amid Omicron risks

GBP/USD is trading mildly offered around 1.3200, unable to find its feet amid persistent concerns over the rising Omicron cases in the UK and resurgent US dollar demand.

The Plan B guidance announced by the UK PM Boris Johnson on Wednesday has pushed back the Bank of England (BOE) rate hike calls to February 2022, undermining the sentiment around the local currency.

Meanwhile, uncertainty over the new covid variant and its implications on the global economic growth keeps the investors on the edge, lifting the US dollar’s safe-haven appeal, which in turn weighs on cable. Read more...

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EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.