Pound Sterling Price News and Forecast: GBP/USD kicks off the new week on a positive note

FXStreet Team FXStreet

GBP/USD Weekly Forecast: Pound Sterling looks for further upside in UK CPI, Fed-BoE decision week

The Pound Sterling (GBP) stalled its correction from over two-year highs against the US Dollar (USD) and staged an impressive comeback, with the GBP/USD pair having tested the critical 1.3000 threshold.

GBP/USD witnessed good two-way price action, correcting sharply to a three-week low of 1.3002 in the first half of the week only to recover the weekly losses in the latter part. The sentiment around the pair was mainly driven by the dynamics of the US Dollar. The Greenback continued to remain at the mercy of the market’s expectations on the size of the interest rate cut by the US Federal Reserve (Fed) in the upcoming week. Read more...

GBP/USD climbs back closer to mid-1.3100s, eyes FOMC/BoE meetings this week

The GBP/USD pair attracts some dip-buying on the first day of a new week amid relatively thin trading conditions on the back of a holiday in China and Japan. Spot prices currently trade around the 1.3135-1.3140 region, up just over 0.10% for the day and remain close to a one-week high touched on Friday amid the prevalent US Dollar (USD) selling bias.

The USD Index (DXY), which tracks the Greenback against a basket of six currencies, languishes near the YTD low set in August amid expectations for a more aggressive policy easing by the Federal Reserve (Fed). In fact, traders are pricing in a greater chance that the US central bank will lower borrowing costs by 50 basis points (bps) later this week after data released last week provided further evidence that inflation in the US was subsiding. This keeps the US Treasury bond yields depressed near the 2024 low and the USD bulls on the defensive. Read more...

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EUR/USD edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.

Gold re-attempts $5,200 amid a softer USD; reduced Fed rate cut bets cap gains

Gold bounces toward $5,200 for the second consecutive day on Thursday amid a modest US Dollar weakness. Wednesday's upbeat US macro data further tempered hopes for three rate cuts by the Fed in 2026. Furthermore, escalating Middle East tensions might continue to benefit the USD's status as the global reserve currency and contribute to capping the bullion.