Pound Sterling Price News and Forecast: GBP/USD bulls turn cautious amid the emergence of some USD buying

FXStreet Team FXStreet

GBP/USD Price Prediction: Consolidates below 1.3100 and YTD peak, bullish potential intact

The GBP/USD pair oscillates in a narrow band during the Asian session on Thursday and remains within striking distance of its highest level since July 2023, around the 1.3120 area touched the previous day. Spot prices currently trade around the 1.3085 region, nearly unchanged for the day, as traders now look to the flash PMIs from the UK and the US for short-term opportunities.

In the meantime, a modest uptick in the US Treasury bond yields assists the US Dollar (USD) in recovering a bit from the YTD low touched on Wednesday. This, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair, though diminishing odds for another interest rate cut by the Bank of England (BoE) in September lend some support. Furthermore, increasing bets for a more aggressive policy easing by the Federal Reserve (Fed) should cap gains for the buck and contribute to limiting losses for the currency pair. Read more...

GBP/USD chalks in a fifth straight gain on Wednesday

GBP/USD briefly tested chart paper on the high side of 1.3100 on Wednesday as Cable continues to push deeper into bull country. The pair is marching into fresh 13-month highs, setting a peak intraday bid of 1.3112, and the Sterling is threatening to cross into its highest prices against the Greenback since April of 2022.

The US Bureau of Labor Statistics announced a steep cut of over 800K jobs to March’s Nonfarm Payrolls (NFP) jobs print, sharply revising previous job growth figures to the low side. The tilt in hiring numbers prompted markets to add to bets of a double cut from the Federal Reserve (Fed) in September. Rate cut bets pinned even higher on Wednesday after the Fed’s latest Meeting Minutes revealed policymakers in the US central bank had already begun discussions about when to begin cutting interest rates as early as July. Read more...

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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.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

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.