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

FXStreet Team FXStreet

GBP/USD Weekly Outlook: Pound Sterling buyers return with a bang

The Pound Sterling (GBP) jumped back into the game against the US Dollar (USD), allowing the GBP/USD pair to stage a solid comeback from five-week troughs.

In doing so, GBP/USD recorded over 1.5% gain over the week, rejoicing in the USD’s demise across the board. Markets smashed US assets such as Wall Street stocks, the Greenback and US government bonds on increased economic and financial stability concerns under US President Donald Trump’s administration. Read more...

GBP/USD holds steady near 1.3100, bulls have the upper hand amid bearish USD

The GBP/USD pair edges higher at the start of a new week and trades just below the 1.3100 mark during the Asian session, well within striking distance of Friday's swing high. Moreover, the bearish sentiment surrounding the US Dollar (USD) suggests that the path of least resistance for spot prices remains to the upside.

The initial market reaction to US President Donald Trump's decision last week to pause sweeping reciprocal tariffs for 90 days turned out to be short-lived amid heightened concerns over a US recession on the back of the escalating US-China trade war. China’s 84% tariffs on US goods took effect on Thursday, while Trump hiked duties on Chinese imports to an unprecedented 145%. Given that the US still imports several hard-to-replace materials from China, the developments weaken confidence in the American economy. This, in turn, dragged the USD Index (DXY), which tracks the Greenback against a basket of currencies, to its lowest level since April 2022 and continues to act as a tailwind for the GBP/USD pair. Read more...

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EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.