Pound Sterling Price News and Forecast: GBP/USD continues to gain ground amid improved-risk on sentiment

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GBP/USD remains above 1.2400, eyes on tariff implementation on China

GBP/USD continues to gain ground for the second successive session, trading around 1.2430 during the Asian hours on Tuesday. The pair improved amid improved risk-on sentiment after US President Donald Trump announced late Monday that he would pause tariffs on Mexico and Canada.

However, market volatility remains a concern, with investors closely monitoring developments in ongoing tariff negotiations. President Trump stated that he would suspend steep tariffs on Mexico and Canada after their leaders agreed to deploy 10,000 soldiers to the US border to combat drug trafficking. The tariffs on Mexico and Canada have been postponed for at least 30 days. Read more...

GBP/USD whipsaws as tariffs come and go

GBP/USD sewered after a batch of fresh tariff threats from US President Donald Trump hit the markets, but plunges across global risk markets clawed back to recover ground after looming US tariffs on Canada and Mexico gave way to 30-day concessions from the Trump administration. Odds of US tariffs on the UK specifically remain limited, and Cable managed to rebound to the 1.2450 region at the tail-end of the Monday trading session.

The Bank of England (BoE) is set to give another rate call later this week, and markets are broadly pricing in another rate cut. The BoE’s Monetary Policy Committee (MPC) is expected to vote eight-to-one on cutting interest rates another quarter-point to 4.5%, with the one holdout expected to vote for holding rates steady for another meeting. Read more...

GBP/USD spins in a giant circle on Monday

GBP/USD roiled on Monday, tumbling 1.5% during the overnight session before recovering back to flat for the day at the 1.2400 handle. Import tariffs from the US brewing into a large-scale global trade war hobbled market sentiment over the weekend.

The US was geared up to impose sweeping import tariffs of 25% on Canada and Mexico, as well as an additional 10% on China, with US President Donald Trump promising to add an additional 10% levy on goods imported from the EU. However, Mexico was able to obtain a one-month reprieve from the US' tariffs, leading investors to hope that the majority of global tariffs will able to be averted by countries acquiescing to whatever Trump demands in exchange for easing tariffs. Donald Trump specifically voiced a desire for "rare earth metals" agreements from Ukraine in exchange for the US' continued help with the Russian invasion, as well as re-floating taking control of the Panama Canal, which is currently owned and controlled by the country of Panama. Read more...

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GBP/USD hits fresh three-month highs above 1.3550

GBP/USD stretches north and trades at its highest level since mid-May above 1.3550 in the second half of the day on Monday. Easing expectations for a Federal Reserve policy tightening step in September hurts the US Dollar and allows the pair to preserve its bullish momentum ahead of this week's key UK inflation data.

EUR/USD pulls away from two-month high, holds near 1.1600

EUR/USD edges lower but stays in positive territory near 1.1600 after setting a fresh two-month high above 1.1610 earlier in the day. The US Dollar struggles to find demand and helps the pair hold its ground as investors scale back bets for a Federal Reserve interest rate hike in September following the previous weeks disappointing macroeconomic data releases from the US.

Gold sticks to gains near $4,400 as USD slumps to two-month low

Gold maintains its bullish tone through the first half of the European session and currently trades around $4,400, up for the second straight day. The commodity, however, remains below the highest level since June 5, touched last Thursday, amid a mixed fundamental backdrop.

Bitcoin range trade hints at looming volatility burst, analysts say

Bitcoin (BTC) trades slightly higher around $63,500 on Monday, following a slight correction the previous week, supported by improving risk sentiment and despite mild outflows from institutional demand.

Economists agree: Fed to leave interest rates unchanged this year – Reuters poll

A large majority of economists expect the Federal Reserve (Fed) to keep interest rates unchanged in September and for the rest of this year, according to a Reuters poll conducted between August 12 and 17.

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.