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

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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 edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.

Gold benefits from a retreating USD; reduced Fed rate cut bets cap gains

Gold attracts some buyers for the second consecutive day on Thursday amid a modest US Dollar pullback from an over three-month high, though it remains below the $5,200 mark. Wednesday's upbeat US macro data further tempered hopes for three rate cuts by the Fed in 2026. Furthermore, escalating Middle East tensions might continue to benefit the USD's status as the global reserve currency and contribute to capping the bullion.