Pound Sterling Price News and Forecast: GBP/USD faces challenges due to rising risk-aversion sentiment

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GBP/USD remains below 1.3300 as risk aversion grows due to rising geopolitical tensions

GBP/USD remains tepid following the losses registered in the previous session, trading around 1.3280 during the Asian hours on Wednesday. This downside could be attributed to the risk aversion due to the rising geopolitical tensions in the Middle East, which undermines the risk-sensitive Pound Sterling (GBP) and GBP/USD pair.

Iran launched over 200 ballistic missiles at Israel on Tuesday, shortly after the US had warned that a strike was imminent. The Israel Defense Forces reported that several of the missiles were intercepted, while reports indicated that one person was killed in the West Bank, according to Bloomberg. Read more...

GBP/USD tumbles on war-wary Tuesday

GBP/USD took a tumble on Tuesday, backsliding to its lowest bids in over a week after US ISM Purchasing Managers Index (PMI) figures misfired and broadly missed forecasts. Geopolitical tensions took center stage during the US market session, further plunging risk appetite lower following reports that Iran has fired on Israel in a clear escalation of ongoing Middle East tensions.

The economic calendar remains relatively free and clear on the Pound Sterling side, with GBP traders forced to wait until the Bank of England’s (BoE) Monetary Policy Report Hearings, due early Thursday. On the US side of things, a trickle of meaningful-in-the-aggregate yet individually meaningless economic data litters the landscape on the road to Friday’s Nonfarm Payrolls (NFP), and investors are grappling with middling releases that are routinely missing the mark. Read more...

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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.

AUD/USD hits nine-week lows below 0.7000 on RBA Bullock's remarks

AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference. Earlier on, the RBA raised the cash rate to 4.60%, as widely expected, leaving the door open to further rate hikes if needed.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.

Gold seems vulnerable near eight-week low amid Fed hike bets

Gold struggles to capitalize on a modest Asian session uptick, trading near its lowest level since August 4, around the $4,100 neighborhood, touched the previous day. Moreover, the bearish fundamental backdrop suggests that the path of least resistance for the precious metal remains to the downside.

Ripple and Stellar face resistance amid weak signals

Ripple and Stellar remain under pressure as bulls struggle to sustain recent gains. XRP extends its decline below $1.480 after three consecutive losing days, while XLM faces rejection near the $0.234 resistance zone. In addition, mixed derivatives outlook and weakening on-chain metrics suggest that bullish momentum remains fragile, leaving both XRP and XLM vulnerable to further losses.

India Gold market cautiously optimistic with approach of festive and wedding seasons

The Indian gold market is cautiously optimistic as we approach the festive gold-buying season. Higher prices continue to weigh on gold jewelry demand even as they support investment purchases. Meanwhile, wedding buying appears “resilient,” according to the World Gold Council.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.