Pound Sterling Price News and Forecast: GBP/USD languishes near a two-week low

FXStreet Team FXStreet

British Pound seems vulnerable near two-week low vs USD; GBP/USD holds above 1.3500

The GBP/USD pair struggles to capitalize on the previous day's late bounce from the 1.3500 psychological mark, or a nearly two-week low, and oscillates in a narrow band during the Asian session on Wednesday. Spot prices remain below the 1.3550 level and seem vulnerable to weaken further amid a combination of negative factors.

The British Pound (GBP) continues to be undermined by a severe political crisis in the UK, with over 80 Labour MPs calling for Prime Minister Keir Starmer to resign following disastrous local election results. The US Dollar (USD), on the other hand, is seen consolidating the previous day's strong gains to an over one-week high as hot US inflation data reaffirmed bets for a rate hike by the Federal Reserve (Fed). These turn out to be key factors acting as a headwind for the GBP/USD pair. Read more...

Pound Sterling slipped after hot US CPI with PPI still ahead

GBP/USD lost about 0.7% on Tuesday, sliding from prior session highs near 1.3650 to test the 1.3500 round figure before a modest late-session rebound. Price recovered close to 1.3540, with the steady move lower through European and US trade leaving the pair at the lower end of its recent multi-day range.

The Pound came under pressure on Tuesday as political instability in Westminster deepened, with more than 70 Labour Members of Parliament (MPs) publicly urging Prime Minister Keir Starmer to resign after heavy local election losses. UK gilts sold off across the curve, with the 30-year yield briefly touching 5.81%, its highest level since 1998, amid worries that a leadership transition could mean looser fiscal policy. Wednesday's focus shifts to Catherine Mann at the Bank of England (BoE), the most committed hawk on the rate-setting committee, who has stated she would vote to lift the main Bank Rate if inflation expectations stay elevated into 2027. With the BoE itself projecting UK inflation to breach 5% this year on Iran-driven energy pass-through, Thursday's preliminary first-quarter UK Gross Domestic Product (GDP) release rounds out the calendar, expected at 0.6% QoQ. Read more...

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FXStreet Team

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