Pound Sterling Price News and Forecast: GBP/USD gains ground to around 1.3235 in the early European session

FXStreet Team FXStreet

GBP/USD edges higher above 1.3200 as Fed rate cut bets pressure US Dollar

The GBP/USD pair gains traction to near 1.3235 during the early European session on Wednesday. The US Dollar (USD) remains weak against the Pound Sterling (GBP) amid growing expectations that the US Federal Reserve (Fed) will deliver a 25 basis points (bps) interest rate cut at its upcoming meeting next week.

Hopes for a December Fed rate reduction provide some support to the Greenback. Anticipation for a December cut has risen following dovish comments from Fed officials and recent signs of a cooling economy. According to the CME FedWatch Tool, there is nearly an 89% chance of a quarter-point rate cut at next week's meeting. Read more...

GBP/USD tepid near 1.3200 as rate watchers look on

GBP/USD cycled around the 1.3200 level on Tuesday as Cable traders keep their heads down during the long wait for further signs of interest rate cuts from both the Federal Reserve (Fed) and the Bank of England (BoE) heading into the final weeks of 2025.

Markets are expecting a tilt toward further interest rate cuts from both the Fed and the BoE in December. The Fed’s next rate call is slated for December 10, with the BoE trailing along on December 18. Read more...

GBP/USD steadies near 1.3200 as traders bet on dual Fed–BoE dovish pivot

GBP/USD holds steady near 1.3200 on Tuesday as the US Dollar (USD) registers minimal gains, despite the US economy continuing to show signs of weakness, which could prompt the Federal Reserve (Fed) to ease policy in the December meeting.

On Monday, the Institute for Supply Management (ISM) reported that manufacturing activity shrank for the ninth consecutive month. The ISM Manufacturing PMI in November missed estimates, falling from 48.7 to 48.2, missing forecasts of 48.6. Also, the employment sub-component reaffirmed the low-firing, low-hiring environment, exerting pressure on the Fed to cut rates. Read more...

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EUR/USD hovers around 1.1650 as RSI signals fading momentum

EUR/USD moves little after registering modest losses in the previous session, trading around 1.1650 during the Asian hours on Wednesday. The 14-day Relative Strength Index momentum indicator, currently at 40 (below the 50 midline), signals weak momentum without indicating oversold conditions.

GBP/USD trades higher ahead of key UK GDP data

The Pound Sterling gains against its major peers, except antipodeans, on Wednesday. The British currency trades higher ahead of the United Kingdom monthly Gross Domestic Product and factory data, which will be released on Thursday.

Gold stays near all-time highs near $4,650 as safe-haven demand rise

Gold reaches the fresh record high of $4,639.77 during the Asian hours on Wednesday. Precious metals, including Gold, attract buyers amid growing bets on Federal Reserve rate cuts following the softer inflation in the United States. US inflation data for December signaled easing underlying US inflation, strengthening views that price pressures are gradually cooling.

US Retail Sales expected to arrive moderately higher on Wednesday

The United States Census Bureau will publish November Retail Sales on Wednesday. The delayed data is expected to show that sales rose a modest 0.4% in the month, following no change in October. The figure is relevant as it corresponds most closely with the consumer spending component of Gross Domestic Product.

More pressure on the Federal Reserve emerges

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank.

Meme Coins Price Prediction: DOGE, SHIB, and PEPE rally, catching Bitcoin's second wind

Meme coins such as Dogecoin, Shiba Inu, and Pepe recorded gains of 7% to 14% on Tuesday, signaling a potential reversal to the upside. DOGE and SHIB hold steady after the bounce back while the frog-themed PEPE extends gains, signaling further upside potential.