Pound Sterling Price News and Forecast: GBP/USD moves little as traders remain cautious amid uncertainty

FXStreet Team FXStreet

GBP/USD steadies around 1.3650 due to rising uncertainty over Trump's tariff plans

GBP/USD holds ground for the second consecutive day, trading around 1.3660 during the Asian hours on Friday. The pair remains steady as the US Dollar (USD) depreciates as traders adopt caution, while seeking clarity on US President Donald Trump's plans for tariffs on various countries. On Thursday, Trump told reporters that he “will begin sending letters on trade tariffs starting Friday.” He added that he would send letters to 10 countries at a time, laying out tariff rates of 20% to 30%, reported by Reuters.

The GBP/USD pair maintains its position as the Pound Sterling (GBP) receives support after Prime Minister (PM) Keir Starmer’s defense of Chancellor Rachel Reeves. PM Starmer affirmed that she would remain in her role of chancellor “for a very long time to come.” This helped ease market concerns that a potential replacement might adopt a looser fiscal stance with increased borrowing. Read more...

GBP/USD grapples with recovery ahead of quiet end to the week

GBP/USD churned away near the low-end of a near-term decline on Thursday, bolstered by selling pressure forcing the US Dollar lower after US Nonfarm Payrolls (NFP) jobs data came in hotter than expected. Markets were expecting a below-forecast print after this week’s ADP jobs preview showed a sharp contraction in private payrolls, but a steep increase in government-based education hiring offset declines in private sector employment.

Friday is set to fizzle in market impact terms. The US side of markets shuttered early on Thursday, and will remain closed for the US holiday on Friday. A mid-tier public appearance from Bank of England (BoE) policymaker Alan Taylor is slated for Friday, but is unlikely to move markets. There is little else of material importance on the UK side of the data docket for Friday. Read more...

GBP/USD steady despite US jobs surprise, Reeves uncertainty caps gains

The Pound Sterling (GBP) remains steady against the US Dollar (USD) on Thursday, after a solid Nonfarm Payrolls (NFP) report in the United States (US) cemented the case for the Federal Reserve (Fed) to hold rates in July, as the Unemployment Rate ticked lower. At the time of writing, GBP/USD is trading at 1.3634, virtually unchanged.

The US Bureau of Labor Statistics (BLS) reported that the US economy added 147,000 people to the workforce, exceeding estimates of 110,000 and May’s 144,000 print. The Unemployment Rate came at 4.1% down from 4.2%. The data fortifies the Fed Chair Jerome Powell's stance of wait-and-see and assesses the potential impact of tariffs on inflation. Read more...

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USD/JPY bulls pause near 160.75 amid intervention risks

USD/JPY is consolidating below 160.75 in Thursday's Asian trading, with intervention fears lending support to the Japanese Yen and capping the pair's upside amid a modest US Dollar downtick. The signing of a US-Iran peace deal to end the war and reopen the Strait of Hormuz undermines the Greenback's reserve-currency status.

AUD/USD rebounds toward 0.7050 on US-Iran deal optimism

AUD/USD bounces back toward 0.7050 in the Asian session on Thursday as the US Dollar retreats from its highest level since late March, touched in reaction to the Fed's hawkish tilt the previous day. The US and Iran electronically signed a MoU aimed at ending the war and reopening the Strait of Hormuz, boosting investors' confidence and undermining the safe-haven USD.

$4,300: Gold bounces amid US-Iran peace deal signing, Fed’s hawkish hold

Gold is reversing the previous slump early Wednesday, regaining $4,300 after finding fresh buyers near $4,250. The US Dollar retreats as US-Iran peace deal optimism overshadows hawkish Fed outlook. Technically, Gold needs a sustained break above the 21-day SMA near $4,390 to revive the recovery.

Ripple awaits a breakout while Stellar rally gathers pace

Ripple steadies at $1.19 below the upper boundary of its falling channel after facing rejection. Meanwhile, Stellar extends its gains, rallying over 25% so far this week. Derivatives metrics suggest a cautious outlook for XRP, while XLM's improving futures positioning suggests a bullish outlook.

A new era for the Fed

The Fed has shifted to a more hawkish stance at the first meeting chaired by Kevin Warsh. Although rates were left unchanged, there will be meaningful adjustments to how the Federal Reserve operates in the coming months and years. There are two main takeaways from today’s meeting, firstly what the Fed did, and secondly, what they are planning to do.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.