Pound Sterling Price News and Forecast: GBP/USD – Political noise and softer BoE pricing

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GBP/USD: Political noise and softer BoE pricing – ING

ING’s Chris Turner notes Sterling has held up even as markets scale back Bank of England tightening expectations to just one 25bp hike this year, while ING expects no change in rates. Political scrutiny of Prime Minister Keir Starmer could weigh on sentiment. ING warns GBP/USD may surrender recent gains, eyeing 1.3380/1.3400 as an initial downside target.

"Sterling has been performing reasonably well despite the market removing a lot of the expected Bank of England tightening this year. The market still prices one 25bp hike this year, while our team sees unchanged rates. That hike may not be priced out until oil prices drop, however." Read more...

GBP/USD Price Forecast: Retakes 1.3500 as Fed repricing hits USD despite Mideast tensions

The GBP/USD pair builds on its modest intraday recovery from a one-week low and climbs back above the 1.3500 psychological mark during the early European session on Monday. Spot prices have now filled the weekly bearish gap and seem poised to appreciate further amid the emergence of fresh US Dollar (USD) selling.

Despite renewed US-Iran tensions over the Strait of Hormuz, the safe-haven USD struggles to capitalize on its early gains to a one-week high amid diminishing odds for a rate hike by the US Federal Reserve (Fed). This marks a significant divergence in comparison to the Bank of England's (BoE) outlook, which might continue to act as a tailwind for the British Pound (GBP) and validates the positive outlook for the GBP/USD pair. Read more...

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