Pound Sterling Price News and Forecast: GBP/USD may test three-month highs

FXStreet Team FXStreet

GBP/USD Price Forecast: Holds above nine-day EMA near 1.3450

GBP/USD edges higher on the first day of the year, trading around 1.3470 during the Asian hours on Friday. The technical analysis of the daily chart indicates a weakening of a bullish bias as the pair remains slightly below the lower boundary of the ascending channel pattern.

The nine-day Exponential Moving Average (EMA) rises and stands above the 50-day EMA, with spot holding over both and maintaining a bullish bias. The 50-day EMA slope is positive, supporting the uptrend. Short-term trend dynamics remain supportive as the nine-day EMA continues to lead the 50-day EMA, and price respects the former on pullbacks. The moving average configuration would keep the topside favored while the medium-term average edges higher. Read more...

GBP/USD gathers strength above 1.3450 on Fed rate cut bets, BoE's gradual policy path

The GBP/USD pair gathers strength to around 1.3480 during the early Asian session on Friday. Expectations of the US Federal Reserve (Fed) rate cuts this year weigh on the US Dollar (USD) against the Pound Sterling (GBP). Philadelphia Fed President Anna Paulson is set to speak later on the weekend.

The Greenback ended 2025 with the sharpest annual decline in eight years. With at least two rate reductions priced in for this year, the Fed's policy path diverges from the United Kingdom (UK), dimming the USD's appeal. Financial markets are pricing in nearly a 15.0% chance the Fed will cut interest rates at its next meeting in January, according to the CME FedWatch tool. Read more...

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The 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. Governor Kazuo Ueda said the policy phase had changed.

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.