Pound Sterling Price News and Forecast: GBP/USD in limbo

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GBP/USD in limbo: Markets scale back BoE rate hike expectations

GBP/USD edged higher to 1.3371 on Tuesday. Markets have scaled back expectations of a Bank of England rate hike following the decline in oil prices.

Brent crude fell to 100 USD per barrel after Donald Trump left open the possibility of a diplomatic solution with Iran. An increase in regional oil supplies added to the downward pressure on prices, easing concerns about an immediate supply shortage. Read more...

British Pound reverses earlier gains as UK Public Sector Net Borrowing surges

The British Pound (GBP) is giving back earlier gains against the US Dollar (USD) on Tuesday as data from the UK revealed that public sector borrowing increased beyond expectations in August, rekindling market concerns about government finances. The GBP/USD pair has retreated to levels below 1.3370, from session highs at the 1.3390 area, although it remains contained within the last few days’ range.

Figures released by the UK National Statistics Office have shown a jump in net borrowing to GBP 18.26 billion in August, from upwardly revised GBP 2.04 billion in July, well above the GBP 15.70 billion forecast by market analysts. Read more...

GBP/USD Price Forecast: Turns flat after breakdown below 1.3400

The British Pound (GBP) is 0.15% higher at around 1.3385 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair gains as the US Dollar is slightly under pressure ahead of meeting between leaders from the United States (US) and Gulf nations.

High-stake talks between the US and Gulf nations regarding the energy supply from the Middle East will likely take place later in the day at the sidelines of the United Nations (UN) General Assembly in New York. Read more...

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FXStreet Team

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AUD/USD picks up bids above 0.7100 after RBA-speak

AUD/USD picks up bids above 0.7100 in the Asian session on Tuesday, following hawkish comments from RBA Assistant Governor Sarah Hunter and Governor Michele Bullock. However, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, which could limit the pair. The crucial Trump-Xi summit is later this week and remains in focus.

USD/JPY holds small gains near 157.50 as JPY intervention risks loom

USD/JPY posts modest gains while trading near 157.50 in the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. Meanwhile, the US Dollar retains a bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, providing tailwinds for the pair.

Gold battles $4,300 amid hawkish Fed, Iran risks

Gold turns lower for the second consecutive day following a modest intraday uptick, challenging the $4,315 region, or a three-day low in the European session on Tuesday. The US Federal Reserve's hawkish outlook is seen as a key factor driving flows away from the non-yielding yellow metal.

Bitcoin pauses rally as profit-taking reaches yearly high

Bitcoin takes a breather, facing a pullback, trading below $85,500 on Tuesday after surging 6.7% the previous day. Strong institutional demand supports the bullish price action, with spot Bitcoin Exchange Traded Funds recording nearly $1 billion in inflows on Monday and Strategy adding 950 BTC to its treasury.

Energy and risk markets remain in the driver’s seat

US stock markets rallied up 2.26% (Nasdaq) yesterday with AI/tech names leading the advance. The Nasdaq even tested the all-time high reached early June. The likes of the S&P 500 and EuroStoxx50 recovered up to 1.5%. Positive risk vibes and lower energy prices supported consolidation on bond markets following the past month’s heavy losses. European yield curves bull steepened.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.