Pound Sterling Price News and Forecast: GBP/USD bulls eye 1.3380 after BOE out-hawks Fed

FXStreet Team FXStreet

GBP/USD Weekly Forecast: Bulls eye 1.3380 after BOE out-hawks Fed, Omicron empowers bears

They say the Federal Reserve signals, the Bank of England acts. This week the "Old Lady" was the first to move among major central banks in raising borrowing costs, which boosted GBP/USD, outweighing Omicron's fears. Looking ahead, the main factors impacting the pound over Christmas are the virus, final UK GDP, a bulk of US figures and speculation about central banks' next moves. Read more...

GBP/USD Forecast: Pound needs to clear 1.3370 hurdle to stretch higher

GBP/USD has gone into a consolidation phase below 1.3350 on Friday after closing the previous three trading days in the positive territory. The British pound gathered strength on Thursday after the Bank of England (BOE) decided to hike its policy rate by 15 basis points but needs to hold above 1.3370 to convince buyers of a steady advance. In its policy statement, the BOE warned that inflation could hit 6% in April. Following the BOE's policy announcements, "We're concerned about inflation in the medium term. And we're seeing things now that can threaten that. So that's why we have to act," Governor Andrew Bailey explained. Moreover, the bank is worried about wage inflation feeding into more persistent price pressures in 2022. Read more...

GBP/USD analysis: Retreats to 50-hour SMA

The GBP/USD jumped on Thursday due to the unexpected Bank of England rate hike at 12:00 GMT. The rate's jump stopped at the weekly R2 simple pivot point at 1.3371. The event was followed by a decline, which on Friday found support in the 50-hour simple moving average and the December high-level zone at 1.3277/1.3288. In the case of the 50-hour providing enough support for a surge, the GBP/USD could reach for the weekly R1 simple pivot point at 1.3324. Afterward, the 1.3340 might act as resistance. Even higher above, the weekly S2 simple pivot point is located at 1.3371. Read more...

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GBP/USD trades below 1.3500 on firmer USD, ahead of UK GDP

The GBP/USD pair trades with a negative bias for the second consecutive day and trades below the 1.3500 psychological mark during the Asian session amid modest US Dollar strength. The downside potential, however, seems limited as traders might opt to wait for the UK macro data dump, including the Q2 GDP report, before placing directional bets.

EUR/USD advances as US Dollar weakens amid cooling Inflation

EUR/USD halts its three-day losing streak, trading around 1.1530 during the Asian hours. The currency pair gains ground as the US Dollar faces challenges following the release of July's Consumer Price Index report. Inflation in the US moderated across a broad range of goods and services, which significantly cooled expectations for an aggressive Federal Reserve rate hike in September.

Gold retreats from June 5 high amid oil-driven Fed rate-hike bets

Gold retreats after touching a fresh high since June 5, around the $4,450 area, during the Asian session, and is currently placed near the lower end of its daily range. The immediate market reaction to signs of moderating US inflation seems to have faded amid expectations that higher energy prices will rekindle inflationary pressures.

Ripple and Stellar outlook: Stay under pressure as cautious sentiment builds

Ripple and Stellar remain under pressure, with both altcoins correcting slightly so far this week. XRP nears the key $1.00 support zone on Thursday, while XLM trades below critical technical levels. Mixed derivatives and on-chain metrics suggest cautious sentiment, leaving both tokens vulnerable to further downside while offering hope for a potential recovery.

UK GDP expected to show moderate Q2 growth

The United Kingdom’s Office for National Statistics will release the preliminary estimate of the second-quarter Gross Domestic Product on Thursday. Market analysts anticipate a 0.4% growth in the three months to June, after a modest 0.6% advance in the first quarter of 2026. Annual progress is expected at 1.1%, up from the 0.9% posted in March.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.