Pound Sterling Price News and Forecast: GBP/USD edges higher amid subdued USD price action

FXStreet Team FXStreet

GBP/USD trades with positive bias around 1.3075 area, lacks follow-through ahead of US CPI

The GBP/USD pair trades with a mild positive bias around the 1.3075 area during the Asian session on Thursday, albeit it lacks bullish conviction and remains within the striking distance of a nearly one-month low touched the previous day.

The US Dollar (USD) consolidates its recent strong gains to the highest level since August 16 and continues to draw support from rising bets for a regular 25 basis points (bps) interest rate cut by the Federal Reserve (Fed) in November. The expectations were reaffirmed by the FOMC meeting minutes released on Wednesday, which showed a consensus that the outsized rate cut would not lock the central bank into any specific pace for future cuts. This keeps the yield on the benchmark 10-year US government bond elevated above the 4% threshold, or its highest level since July 31, which continues to underpin the buck and acts as a headwind for the GBP/USD pair. Read more...

GBP/USD Price Forecast: Bears gather steam, push prices below 1.3100

The British Pound lost some ground against the Greenback on Wednesday as traders await minutes of the Federal Reserve’s last meeting and US inflation data on Thursday. At the time of writing, the GBP/USD trades at 1.3070, below its opening price by 0.26%.

The GBP/USD has consolidated within the 1.3060-1.3140 range for the last three days. The lack of a catalyst keeps market players uncertain, though last week’s US jobs report boosted the Greenback, which reached levels last seen in August 2024. Read more...

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EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

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