Pound Sterling Price News and Forecast: GBP/USD depreciates around 1% amid US President Trump’s tariff threats

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GBP/USD Weekly Outlook: Pound Sterling faces resistance ahead of BoE decision

The Pound Sterling (GBP) recovery gathered steam against the US Dollar (USD), driving GBP/USD to three-week highs above 1.2500 before buyers turned to the sidelines.

Sentiment surrounding US President Donald Trump’s tariff plans and the US Federal Reserve’s (Fed) policy outlook remained the primary drivers for the GBP/USD pair in the past week. Read more...

GBP/USD falls below 1.2300 following Trump tariffs

GBP/USD continues its decline for the fifth consecutive session, hovering around 1.2270 during Monday’s Asian trading hours. The pair has weakened by around 1% as the US Dollar Index (DXY), which measures the US Dollar (USD) against six major peers, gains strength following US President Donald Trump’s tariffs against China, Canada, and Mexico.

On Saturday, the US informed that it would impose 25% tariffs on Canadian and Mexican goods, while Chinese exports would face a 10% tariff. Additionally, Canadian energy exports will be subject to a 10% tariff, according to CTV. These tariffs are set to take effect on Tuesday and will remain in place until the fentanyl overdose crisis is "sorted." In response, Canada, Mexico, and China have pledged retaliatory measures against the sweeping new trade restrictions. Read more...

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FXStreet Team

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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 drops to multi-week lows below 1.3300

GBP/USD sets aside Friday’s uptick and breaches below the 1.3300 yardstcik on Monday to hit new multi-week troughs. Falling crude oil prices following a pause in the Middle East conflict in combination with the recent soft reading in UK inflation appear to play against any BoE tightening ahead of the bank’s event later in the week.

EUR/USD advances marginally around 1.1380

EUR/USD loses bullish momentum and slips back below the 1.1400 region at the beginning of the week. Hopes of a de-escalation in the Middle East appears to lend support to the pair, although uncertainty persists over whether the US and Iran can reach a lasting solution.

Gold struggles to extend gains beyond $4,100

Spot Gold gapped higher at the beginning of the new week, as a pause in Middle East hostilities underpinned the mood and weighed on the US Dollar (USD). The XAU/USD pair traded as high as $4,116.20 during Asian trading hours, following a pause in strikes between Iran and the United States (US).

Bitcoin holds above key support amid ETF inflows, US-Iran bombing pause

Bitcoin (BTC) holds above the key 200-week Simple Moving Average (SMA) around $63,500, having posted four consecutive weeks of gains. Institutional demand shows mild signs of improvement with spot Exchange Traded Funds (ETFs) posting inflows for a third consecutive week.

Bitcoin options traders are dropping their hedges going into the Fed meeting

Bitcoin's options market has turned notably less defensive over the past month, unwinding the downside protection traders built up in June just as the Federal Reserve prepares to meet.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.