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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GBP/USD stays below 1.3400 after soft UK CPI data

GBP/USD struggles to gain traction and stays below 1.3400 in the second half of the day on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, making it difficult for the British Pound gather recovery momentum. Meanwhile, investors keep a close eye on headlines coming out of the Middle East.

EUR/USD stabilizes near 1.1400 as markets focus on geopolitics

EUR/USD trades in a narrow channel at around 1.1400 on Wednesday. In the absence of high-impact data releases, escalating geopolitical tensions in the Middle East caps the pair's upside. On Thursday, the European Central Bank (ECB) will announce monetary policy decisions.

Gold extends rally as Middle East concerns intensify

Gold extends gains for the fourth consecutive day, standing comfortably above $4,100, unfazed by the risk-off market amid rising tensions in Iran and higher Oil prices. The pair has rallied nearly 2.5% so far this week and is on track for its best weekly performance in more than three months.

XRP consolidates as inflows and volume climb

Ripple (XRP) retains a slightly bullish outlook on Wednesday despite logging a minor correction from the supply range near $1.15. The remittance token is down 0.5% on the day, reflecting a broader cryptocurrency market drawdown, primarily driven by persistent geopolitical tensions between the United States (US) and Iran in the Middle East.

US – Fed preview: A divided hold

The first month after Kevin Warsh's debut at the FOMC's June meeting has brought mixed signals on the inflation front. On one hand, the re-escalation of the war in Iran has lifted energy prices higher again. Yet on the other hand, Warsh's hawkish comments have already lifted real rates, supported broad USD and tightened financial conditions while realized inflation surprised to the downside in June.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.