Pound Sterling Price News and Forecast: GBP/USD inches lower as traders adopt caution ahead of Fed’s policy

GBP/USD slips below 1.3000 amid firm US Dollar ahead of Fed decision

GBP/USD edges lower, trading around 1.2990 during Asian hours on Wednesday after posting gains in the previous two sessions. The pair struggles as the US Dollar (USD) remains firm, supported by stable US Treasury yields ahead of the Federal Reserve’s (Fed) interest rate decision later in the day. Markets widely expect the Fed to hold rates steady amid persistent inflation concerns and economic uncertainty.

The US Dollar Index (DXY), which measures the USD against six major currencies, trades near 103.40. Meanwhile, yields on 2-year and 10-year US Treasury bonds stand at 4.04% and 4.29%, respectively, at the time of writing. However, the Greenback faced pressure from weak US economic data and renewed tariff threats from US President Donald Trump, adding to investor uncertainty. Read more...

GBP/USD tests higher ground ahead of back-to-back central bank rate calls

GBP/USD traded thinly on Tuesday, but still inched back into the 1.3000 handle, chalking in a fresh 19-week high ahead of high-impact rate calls from both the Federal Reserve (Fed) and the Bank of England (BoE). The Fed is widely expected to hold steady on rates this week, but a fresh update to the Federal Open Market Committee’s (FOMC) interest rate expectations will draw plenty of eyes.

The Federal Reserve’s (Fed) latest rate call is due on Wednesday. According to the CME’s FedWatch Tool, rate markets broadly anticipate the Fed to stand pat on rates for the next two meetings, with the next quarter-point rate trim expected at the Federal Open Market Committee’s (FOMC) June meeting. However, the FOMC’s latest interest rate forecasts will be released this week. They could send rate cut expectations through the wringer if Fed policymaker’s expectations for interest rates deviate wildly from current market forecasts. Read more...

GBP/USD retreats below 1.3000 after hitting 4-month high amid Fed, BoE uncertainty

The Pound Sterling (GBP) is retreating during the North American session against the US Dollar (USD) after hitting a four-and-a-half-month high at 1.3000 before trimming earlier gains. At the time of writing, the GBP/USD trades at 1.2975, down 0.12%. Economic data continues to be overlooked as traders digest United States (US) President Donald Trump's protectionist policies aimed at reducing the trade deficit.

Earlier, US Industrial Production in February expanded 0.7% MoM, exceeding estimates of 0.2% and January’s 0.3% print, boosted by motor vehicles. Housing data was mixed, with Building Permits in February falling 1.2% from 1.473 million to 1.456 million, while Housing Starts for the same period rose 11.2% from 1.35 million to 1.501 million. Read more...