Pound Sterling Price News and Forecast: GBP/USD gains ground due to increasing likelihood of Fed rate cuts

GBP/USD rises above 1.3450 on rising odds of further Fed rate cuts

GBP/USD extends its winning streak for the fourth successive session, trading around 1.3460 during the Asian hours on Wednesday. The pair may further appreciate as the US Dollar (USD) faces challenges after soft US jobs data increased the odds of Federal Reserve (Fed) rate cuts. The CME FedWatch Tool suggests that markets are now pricing in nearly a 97% chance of a Fed rate cut in October and a 76% possibility of another reduction in December.

The recent US Job Openings showed the labor market is slowing, yet vacancies rose from 7.21 million to 7.23 million in August. Meanwhile, the hiring rate edged down to 3.2%, the lowest level since June 2024, while layoffs remained at a low level. Traders are likely to await the release of September’s US ADP Employment Change and ISM Manufacturing PMI data, which could be affected due to the government shutdown. Read more...

GBP/USD finds uneasy gains ahead of US government shutdown

GBP/USD caught a slight lift on Tuesday, creeping into the 1.3450 region and tilting into a third straight bullish session. United Kingdom (UK) Gross Domestic Product (GDP) growth figures beat expectations, bolstering the Pound Sterling (GBP), while US Dollar (USD) flows hunkered in place as investors brace for the US government's latest funding crisis shutdown.

UK GDP accelerated to 1.4% YoY in Q2, rising above the expected hold at 1.2%. GBP flows tilted bullish afterward, but FX market flows have broadly drawn down ahead of the US government shutdown, which was confirmed after Congress retired early on Tuesday, forcing the US federal government to cross the fiscal year rollover on October 1 without a functioning government budget plan. Read more...

GBP/USD extends winning streak as US shutdown fears hit US Dollar

The Pound Sterling (GBP) extends its gains for three straight days on Tuesday, edging up 0.20% as investors sell off the US Dollar (USD) amid fears of a US government shutdown. GBP/USD is trading at 1.3461 at the time of writing. The lack of progress between the White House and Democratic leaders on funding the US government keeps traders anxious due to concerns that a shutdown might disrupt the release of economic data, like the Nonfarm Payrolls figures, set to be announced on Friday.

Job openings in the US remained steady in August, as vacancies ticked up from 7.208 million in July to 7.227 million, exceeding estimates of 7.2 million. At the same time, the Conference Board (CB) revealed that Consumer Confidence missed estimates of 96.0, dipping from 97.8 in August to 94.2 in September. Read more...