Pound Sterling Price News and Forecast: GBP/USD flatlines around 1.3630

FXStreet Team FXStreet

British Pound hovers near six-month highs with investors awaiting key US events

The British Pound (GBP) remains practically flat for the second consecutive day against the US Dollar (USD), with markets on a “wait-and-see” stance, awaiting key US Inflation data on Wednesday and the Jackson Hole central bankers’ summit on Friday. The GBP/USD pair flatlines around 1.3630 with the six-month highs of 1.3675 reached last week still in the bulls’ target.

FX volatility is unusually low, in the absence of key macroeconomic releases, ahead of August’s US Personal Consumption Expenditures (PCE) Price Index figures, the US Federal Reserve’s (Fed) favourite inflation gauge. The market consensus points to sticky inflationary pressures, which would give further reasons for Fed hawks to call for monetary tightening. Read more...

GBP/USD holds near highs: Focus turns to key events later this week

GBP/USD is holding at 1.3627 on Tuesday. In the final full week of August, the pair remains near its highest level since mid-February. Sterling is being supported by dollar weakness following the US Treasury’s unexpected decision to at least double its purchases of long-term government bonds.

Investors are also awaiting details of new sanctions against Iran. The highlight of the week will be Fed Chair Kevin Warsh’s speech at Jackson Hole on Friday, which could shape expectations for the future trajectory of US interest rates. Read more...

GBP/USD Price Forecast: Rally pauses below 1.3700

The British Pound (GBP) trades marginally higher against the US Dollar (USD) at around 1.3640 during the European trading session on Tuesday, even as the US Dollar Index (DXY) edges up, indicating strength in the British currency.

At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades slightly higher to near 99.10. The Pound Sterling gains despite market experts seeing the Bank of England (BoE) holding interest rates steady in the near term. Read more...

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GBP/USD remains stuck in tight range above 1.3600

GBP/USD extends its consolidation into a second consecutive day on Tuesday and fluctuates in a narrow band above 1.3600. The US Dollar stabilizes as investors assess US sanctions on Iran, while diplomatic efforts creep back amid reports that Pakistan is carrying an offer to Iran to halt the siege and lift sanctions under the Memorandum of Understanding.

EUR/USD stays below 1.1700 on modest US Dollar recovery

EUR/USD struggles to gather recovery momentum and trades below 1.1700 in the second half of the day on Tuesday. The US Dollar (USD) benefits from the cautious mood as investors assess the latest developments in the Middle East. Later in the day, the US economic calendar will feature consumer sentiment data for August.

Gold pauses near three-month high after sharp rally

Gold loses ground on Tuesday after setting a fresh three-month high of $4,697 earlier in the Asian session. Traders appear to be booking some profits following the recent rally, which has pushed the RSI into overbought territory.

Bitcoin's rally above $80,000 shows signs of overheating

Bitcoin extends gains, trading above $80,000 at the time of writing on Tuesday following its strongest weekly rise in more than three years. Institutional demand continues to support this rally, with spot Exchange Traded Funds recording positive inflows on Monday.

Iran and Fed outlook remain uncertain after Bessent’s comments and ahead of Jackson Hole

Asia Market Update: Directionless trading continues for a 2nd straight session; Iran and Fed outlook remain uncertain after Bessent’s comments and ahead of Jackson Hole; Oman’s Foreign Minister will visit Tehran to Tues, Pakistan commented on MOU.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.