Pound Sterling Price News and Forecast: GBP/USD faces a tricky moment: What will help the Pound?

FXStreet Team FXStreet

GBP/USD faces a tricky moment: What will help the Pound?

GBP/USD is rising moderately on Wednesday, moving away from a one-and-a-half-week low around 1.3300. The pair recovered to 1.3346, but further upside remains very limited amid a strong dollar and expectations of tighter Fed policy.

The pound is being supported by hopes for a diplomatic settlement of the US-Iran conflict, which reduces demand for the dollar as a safe-haven asset. US Secretary of State Marco Rubio stated that large-scale military operations against Iran are not currently necessary. Earlier, Donald Trump also said he sees no reason for further escalation. Read more...

British Pound hangs near one-week low, eyes 1.3300 as Fed hike bets lift USD

The GBP/USD pair turns lower for the second straight day following an intraday uptick to the 1.3355 region on Wednesday, sliding back closer to a one-and-a-half-week low, which it touched the previous day. Spot prices, however, hold above the 1.3300 mark amid a combination of diverging forces, warranting caution for aggressive bearish traders.

The US Dollar (USD) extends a hot US consumer inflation-inspired rally to a near one-week top amid firming expectations for a more aggressive tightening by the Federal Reserve (Fed) and exerts some downward pressure on the GBP/USD pair. Meanwhile, traders have started pricing in the possibility of a jumbo rate hike in December in reaction to Fed Governor Christopher Waller's hawkish comments on Tuesday. Read more...

GBP/USD Price Forecast: Traders seem hesitant below 1.3300s; 200-SMA on H4 holds the key

The GBP/USD pair struggles to build on modest Asian session uptick beyond mid-1.3300s, though it holds above a one-and-a-half-week trough, touched the previous day.

The US Dollar (USD) preserves the previous day's hot US consumer inflation figures-inspired gains amid odds for a jumbo 50-basis-point (bps) rate hike by the US Federal Reserve (Fed) in December. That said, hopes for US-Iran diplomacy cap the upside for the safe-haven Greenback. Furthermore, the Bank of England's (BoE) hawkish outlook acts as a tailwind for the GBP/USD pair. Read more...

Author

FXStreet Team

FXStreet

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.

AUD/USD bounces off multi-month low, nears 0.6900

AUD/USD edges higher toward 0.6900 in the Asian session on Wednesday, recovering some of the previous day’s losses to its lowest level since March as the US Dollar stalls the hot US CPI-inspired rally amid hopes of a US-Iran peace deal. Meanwhile, hawkish comments from FOMC members have almost confirmed another December rate hike, which favors USD bulls and should cap the Aussie.

USD/JPY remains capped below 159.00 amid looming intervention risks

USD/JPY struggles to build on the previous day’s strong gains to a near one-month top as intervention risk supports the Japanese Yen while hopes of a US-Iran peace deal cap the safe-haven US Dollar. That keeps the pair's upside limited below 159.00, for now.

Gold sticks to gains near $4,050 amid steeper Fed rate hike bets

Gold clings to recovery gains near $4,050 in the European session on Wednesday. However, upside seems limited amid sustained US Dollar demand. Tuesday's hot US inflation figures fuel expectations of a more aggressive policy tightening by the US Federal Reserve (Fed). This helps the Greenback preserve recent strong gains, despite hopes for US-Iran diplomacy.

Bitcoin at risk of sharp moves as leverage builds in derivatives markets

Bitcoin remains in a capped tone, trading around $73,800 after slipping to a low of $72,727 following the previous day’s hot US inflation figures. Institutional demand continues to weaken, with BTC spot Exchange Traded Funds recording a $95 million outflow on Tuesday, marking the fourth straight day of withdrawals. Traders should be cautious as a K33 Research report highlights that BTC is at risk of sharp moves as leverage builds in derivatives markets.

Hot CPI helps cement December Fed hike as Nvidia slumps

October CPI inflation landed yesterday and beat expectations across the board. Note that we only received the MM figures because of last year’s government shutdown. Headline MM came in at 0.4%, beating the 0.3% forecast, though below September's 0.6%. Core MM also came in at 0.3%, slightly higher than the 0.2% estimate and matching the prior month’s reading.

What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.