Pound Sterling Price News and Forecast: GBP/USD gains momentum to around 1.3525 during early European session.

GBP/USD extends upside above 1.3500 on risk-on sentiment

The GBP/USD pair extends the rally to near 1.3525 during the early European session on Wednesday. The risk-on mood provides some support to the riskier currency, like the Pound Sterling (GBP). Investors will keep an eye on the preliminary reading of UK Purchasing Managers Index (PMI) reports, which are due later on Thursday. 

Uncertainty over tariff policy and concerns over the Federal Reserve (Fed) independence might weigh on the Greenback. Investors brace for Trump’s tariffs on top trading partners to take effect next month on one hand and bet that Trump will postpone them yet again on the other. Meanwhile, US Treasury Secretary Scott Bessent said earlier this week that the administration is more concerned with the quality of trade agreements than the timing. Read more...

GBP/USD continues bullish bounce as Greenback continues to weaken

GBP/USD rose for a second straight day on Tuesday, lifted by a general weakening in global Greenback markets. The US Dollar (USD) continues to take a beating as investors grow weary of United States (US) President Donald Trump targeting Federal Reserve (Fed) Chair Jerome Powell, and fears of the Fed’s political autonomy being undermined are kicking the supports out from beneath the Greenback.

President Trump continues to campaign for the removal of Fed Chair Powell. Lacking the legal power to directly interfere with Fed staff, the Trump administration is actively trying to build a case out of anything that would give them an avenue to replace the Fed head. The Trump team is looking for a Fed pick that will be more friendly to sharply lowering interest rates, even as inflationary pressures from tariffs continue to simmer away near the surface. Read more...

GBP/USD edges higher despite soaring UK borrowing as Dollar slips further

The GBP/USD advances modestly during the North American session as the US dollar extends its losses for two straight days, despite data showing that UK government borrowing soared in June. At the time of writing, the pair trades at 1.3504 up 0.12%.

Sterling remains underpinned by the trade agreement signed with the US, amid uneasy times of trade talks between the US and its largest trading partners: the European Union (EU), Canada, and Mexico. These three countries received letters from the White House that imposed levies between 30% to 35%, effective August 1. Read more...