Pound Sterling Price News and Forecast: GBP/USD drifts higher to near 1.3685 early European session

FXStreet Team FXStreet

GBP/USD holds gains above 1.3650 as BoE rate decision looms

The GBP/USD pair gains momentum to around 1.3685 during the early European session on Tuesday. The Pound Sterling (GBP) gathers strength against the Greenback on the cautiously hawkish stance of the Bank of England (BoE). All eyes will be on the BoE interest rate decision later on Thursday.

The BoE’s Monetary Policy Committee voted 5-4 to cut the Bank Rate in December, the fourth quarter-point reduction of 2025. But most of its policymakers suggested the pace of rate cuts could slow. The UK central bank will announce its policy decision later this week, and most economists expect the UK central bank to keep the benchmark rate on hold at 3.75% due to persistent inflation. Read more...

Pound Sterling losses slow as BoE rate decision looms

The Pound Sterling (GBP) took another step lower amid a cautious stance against the US Dollar (USD) on Monday, easing back from recent multi-year highs as investors positioned ahead of a busy week of UK data and the Bank of England's (BoE) first policy decision of 2026. GBP/USD slipped to 1.3646, pulling back from the August 2021 high of 1.3847 reached on January 27, as a firmer Greenback and pre-BoE positioning weighed on Cable.

The BoE is widely expected to hold its Bank Rate unchanged at 3.75% when it announces its decision on Thursday. Markets see only a 4% chance of a rate cut at the February meeting, with the first reduction now priced for April at the earliest. The Monetary Policy Committee (MPC) remains divided on the pace of further easing, with December's decision to cut rates a 5-4 split. Governor Andrew Bailey noted that future cuts would become "a closer call" as the Bank Rate approaches neutral levels estimated at 3%-3.5%. Read more...

GBP/USD dips as Dollar stays bid on Warsh Fed pick, strong ISM data

The Pound Sterling (GBP) dives some 0.17% on Monday as the US Dollar (USD) extends its gains to two straight days, following the precious metals rout that pushed Gold prices down by over $1,000 after reaching a record high near $5,600. GBP/USD trades at 1.3662 after reaching a daily high of 1.3715.

Last Friday, US President Donald Trump nominated Kevin Warsh to be the new Fed Chair since June 2026. After the announcement, markets priced in a less 'dovish' US central bank as Warsh, a former governor at the Fed, was usually hawkish in his previous stint. Read more...

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FXStreet

EUR/USD stays firm above 1.1800 amid USD retreat

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GBP/USD retakes 1.3700 as fresh buying emerges

GBP/USD is advancing in the European session on Tuesday, re-attempting the 1.3700 mark. The Pound Sterling rebounds against the US Dollar amid improved market mood and a repositioning ahead of the Bank of England's first policy decision of 2026.

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Zilliqa Price Forecast: ZIL rallies over 20% ahead of Cancun EVM upgrade

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