Pound Sterling Price News and Forecast: GBP/USD bulls seem hesitant amid the Fed’s hawkish tilt

Pound Sterling flat lines vs USD as traders await BoE policy update and US PCE Price Index

The GBP/USD pair struggles to capitalize on a modest Asian session uptick to the 1.3500 neighborhood, though it holds above the 100-day Simple Moving Average (SMA). Spot prices currently trade around the 1.3475-1.3480 region, nearly unchanged for the day, as traders look forward to the Bank of England (BoE) event and the US inflation data for a fresh impetus.

The UK central bank is scheduled to announce its policy decision later today and is expected to keep interest rates on hold. The current market pricing, however, points to a greater possibility of two rate hikes in 2026 amid inflation risks stemming from the war-driven surge in energy prices. Hence, the focus will be on the accompanying policy statement and the post-meeting press conference, where comments from BoE Governor Andrew Bailey will be scrutinized for cues about the interest rate path. The outlook, in turn, will play a key role in influencing the British Pound (GBP). Read more...

GBP/USD treading water as BoE and US PCE collide in 90-minute window: who wins?

Wednesday set the trap: GBP/USD spent the early part of the week trying to defend the 1.355 area, then folded. The pair drifted lower from the European open, accelerated through the New York session, and printed a session low near 1.3460 just after 18:00 GMT, before scraping back to close near 1.3480. Three things did the damage: First, Donald Trump's "No More Mr. Nice Guy" Truth Social post just after 08:00 GMT, which pushed Brent above $110/bbl and gave the US Dollar (USD) a fresh safe-haven bid. Then, the Federal Reserve (Fed) held at 3.5% to 3.75%, which on its own was priced to perfection but came with the most divided Federal Open Market Committee (FOMC) vote since 1992. Finally, Fed Chair Jerome Powell's farewell press conference leaned hawkish enough to push the 10-year US Treasury yield above 4.4%. Cable went into Thursday looking heavy.

The Thursday calendar reads like it was designed to maximize pain. The Bank of England (BoE) rate decision drops at 11:00 GMT, alongside Minutes, the Monetary Policy Report, the Monetary Policy Summary, and the MPC vote breakdown. BoE Governor Andrew Bailey speaks at 11:30 GMT. Then, 60 minutes after that, at 12:30 GMT, the US delivers the March Personal Consumption Expenditures Price Index (PCE), Q1 advance Gross Domestic Product (GDP) figures, the Q1 Employment Cost Index, and weekly Initial Jobless Claims, all in the same release window. Chicago Purchasing Managers Index (PMI) follows at 13:45 GMT. Two central banks, two inflation readings, one currency pair. The pair could whipsaw twice before lunch. Read more...

GBP/USD falls as Fed holds rates steady, Powell to stay at Fed

GBP/USD maintains its negative intraday trend on Wednesday, remaining steady following the Federal Reserve’s (Fed) decision to keep interest rates unchanged at Jerome Powell’s final meeting as Fed Chair. As of this writing, the currency pair is trading near 1.3480, down 0.30%, as market participants await insights from Powell’s forthcoming press conference.

At his press conference, Jerome Powell congratulated Kevin Warsh as he hurdled the first stage on his path to becoming his successor as Fed Chair and clarified that he will remain as Governor until the criminal investigation against him concludes. He added that, as Governor, he “will keep a low profile” and that he will stay at the Fed after May 15, when his eight-year term as the chief of the US central bank ends. Read more...