Pound Sterling Price News and Forecast: GBP/USD gains positive traction during USD bullish consolidation phase

FXStreet Team FXStreet

GBP/USD trades with positive bias below 1.3400, remains close to multi-week low ahead of UK CPI

The GBP/USD pair ticks higher during the Asian session on Wednesday, though it lacks follow-through buying and remains below the 1.3400 round-figure mark. Moreover, spot prices remain close to a three-and-a-half week low touched on Tuesday and seem vulnerable to prolonging the recent downward trajectory witnessed over the past two weeks or so.

The US Dollar (USD) is seen consolidating its recent strong gains to the highest level since June 23 and is seen as a key factor lending some support to the GBP/USD pair. However, diminishing odds for a near-term reduction in borrowing costs by the Federal Reserve (Fed), amid concerns that US President Donald Trump's trade tariffs would boost inflation, should act as a tailwind for the buck. Read more...

GBP/USD declines steepens as hotter CPI bolsters Greenback

GBP/USD shed weight for the eighth straight session on Tuesday. Global risk appetite soured after US Consumer Price Index (CPI) inflation rose in June, casting a long, tariff-fueld shadow over investors that were hoping for a quick pivot into fresh rate cuts from the Federal Reserve (Fed) in the third quarter.

US CPI inflation rose through the tail end of the second quarter. Despite the figures mostly keeping in line with or beating median forecasts, investors are still feeling the pressure from rising price pressures. Annualized headline CPI inflation rose to 2.7% YoY in June, moving in the opposite direction of the Fed policy target range of 2%. With inflation pressures still simmering away in the background, already-thin market hopes for an early rate cut from the Fed have evaporated. Read more...

GBP/USD loses further ground after hot US CPI inflation print rocks rate cut bets

GBP/USD shed another two-thirds of one percent top-to-bottom on Tuesday, extending into an eighth consecutive day of Cable losses. The US Dollar (USD) caught a risk-off bid after US Consumer Price Index (CPI) inflation rose through June, reigniting fears of another pushback on the Federal Reserve's expected pace of rate cuts through the year-end.

US CPI inflation crept up through the end of the second quarter. Even though the numbers mostly met or beat expectations, investors still feel the pinch from rising prices. In June, the annualized headline CPI inflation rate increased to 2.7% year-over-year, drifting away from the Fed’s target range of 2%. With inflation still lingering, hopes for an early rate cut from the Fed have faded. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.