Pound Sterling Price News and Forecast: GBP/USD erodes a part of Monday’s gains

FXStreet Team FXStreet

GBP/USD Price Forecast: Depressed below 1.3500 on firmer USD; bullish potential intact

The GBP/USD pair struggles to capitalize on the previous day's strong move up to levels beyond the 1.3500 psychological mark, or a one-and-a-half-week high, and attracts some sellers during the Asian session on Tuesday. Spot prices currently trade near the 1.3485 region, down just over 0.10% for the day, amid a modest US Dollar (USD) strength.

Reports that US forces conducted self-defense strikes in southern Iran on Monday dampen hopes for a deal to end a three-month-old conflict in the Middle East. Furthermore, reviving inflationary fears bolster hawkish US Federal Reserve (Fed) expectations and help the safe-haven USD to regain positive traction following the previous day's decline to over a one-week low, exerting some pressure on the GBP/USD pair. Read more...

British Pound softens below 1.3500 as renewed US-Iran tensions favour US Dollar

The GBP/USD pair loses ground to near 1.3495 during the early Asian session on Tuesday. The British Pound (GBP) softens against the US Dollar (USD) on weak underlying UK data and US-Iran peace deal uncertainty. The US April Personal Consumption Expenditures (PCE) Price Index report will be the highlight later on Thursday.

The US military’s Central Command said late Monday that US forces have carried out strikes on southern Iran in “self-defence.” Fox News reported that two Iranian boats had been spotted laying mines in the Strait of Hormuz, and the US military also responded after a missile site targeted US warplanes. Read more...

British Pound rises toward 1.3500 as hopes for US-Iran deal improve market sentiment

The British Pound (GBP) strengthens against the US Dollar (USD) on Monday, with GBP/USD climbing toward the 1.3500 mark as improving optimism surrounding a possible US-Iran agreement boosts market sentiment and weighs on the Greenback. At the time of writing, the pair is up 0.54% on the day, hovering near its highest level since May 14.

The US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, consolidates losses near the 99.00 mark after touching more than one-month highs around 99.50 last week. Read more...

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GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.