Pound Sterling Price News and Forecast: GBP/USD holds steady as investors stay cautious

FXStreet Team FXStreet

Pound Sterling remains flat as traders adopt caution ahead of Fed decision

GBP/USD steadies after posting gains over the previous two sessions, hovering around 1.1350 during Asian trading hours on Wednesday. The pair shows limited movement as the US Dollar (USD) holds steady, with investors remaining cautious ahead of the Federal Reserve’s (Fed) policy decision scheduled for later in the day. Traders focus on guidance from Fed Chair Jerome Powell regarding how the recent surge in oil prices may influence the central bank’s policy outlook.

Markets widely anticipate that the Federal Reserve will keep its benchmark interest rate unchanged within the 3.50%–3.75% range for March, according to the CME FedWatch Tool. If the Fed opts to hold rates steady, it would mark the second consecutive pause, reflecting a cautious stance amid increasing economic and geopolitical uncertainty. Read more...

GBP/USD steadies ahead of back-to-back Fed and BoE decisions

The Pound Sterling edged higher for a second session as traders brace for Wednesday's Fed hold and Thursday's BoE rate decision. The Fed is expected to hold rates at 3.50% to 3.75% on Wednesday as the Iran conflict clouds the rate outlook. On the other hand, the BoE is widely expected to hold at 3.75% on Thursday in a 7-2 vote after the Iran-driven energy shock slashed March rate cut odds.

GBP/USD rose about 0.3% on Tuesday, gaining ground for a second consecutive session and trading around 1.3360. The pair has found a floor between 1.3250 and 1.3300 after sliding to a three-month low close to 1.3220 late last week, though it remains below both its key daily moving averages. The two-day bounce has produced a pair of modestly bullish candles, but price is still well within the broader sell-off from the late-January high near 1.3870. Read more...

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FXStreet Team

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