Pound Sterling Price News and Forecast: GBP/USD pauses its two-day rally

FXStreet Team FXStreet

GBP/USD struggles near 1.2350 as Trump’s tariff hikes proposal remains afloat

GBP/USD pauses its two-day rally, trading around 1.2330 during the Asian session on Wednesday. The pair remains subdued as the US Dollar (USD) holds onto modest gains. US President Donald Trump confirmed that the proposal for universal tariff hikes is still under consideration, although he stated, "We are not ready for that yet." Additionally, Trump issued a memorandum directing federal agencies to investigate and address the ongoing trade deficits.

The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, holds ground around 108.00 at the time of writing. However, the Greenback faced headwinds as Trump opted not to impose new tariffs on his first day in office. Read more...

GBP/USD poised for further headline-fueled gains

GBP/USD spun in a circle on Tuesday, falling and then climbing in lockstep with global money flows into and out of the US Dollar. The Pound Sterling saw mixed labor data results from the UK, but the UK’s own labor department takes the numbers with a grain of salt. On the American side, US President Donald Trump brushed off his own campaign trail promises of instituting sweeping day-one tariffs on all of the US’ trading partners, focusing newer, more refined tariff threats on the US’ North American trade partners Canada and Mexico.

Markets have whipsawed as investors race to catch up with the newest headline generator on the block, President Trump. Investors have been betting big that the newly-minted US President wouldn’t impose day-one tariffs as he had long threatened, however a fresh round of updated trade rhetoric is keeping market sentiment tangled in the midrange. 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.