Pound Sterling Price News and Forecast: GBP/USD remains weaker as UK-US yields narrow

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British Pound remains weaker as UK-US yields narrow, US Dollar strengthens

GBP/USD extends its losses for the second consecutive day, trading around 1.3450 during the Asian hours on Friday. The pair depreciates as the British Pound (GBP) softens even as United Kingdom (UK) political risk fades.

Analysts at Scotiabank observe that "fundamentals appear to be somewhat less supportive for the GBP, as we note the renewed softening in yield spreads," tempering the near-term backdrop for the currency. However, they also highlight that "sentiment continues to improve" as "market participants continue to fade politically-motivated concerns following the recent political transition and arrival of PM Burnham." In their view, "the new PM’s commitment to fiscal responsibility appears to be much stronger than expected," helping to offset the drag from softer yield differentials and underpinning a more constructive tone toward the Pound. Read more...

British Pound steadies despite strong US jobs data ahead of NFP

The Pound Sterling (GBP) holds firm against the US Dollar (USD) during the North American session on Thursday, after US jobs data reinforces the thesis that the labor market remains solid ahead of Friday’s Nonfarm Payrolls report. The GBP/USD pair trades at 1.3466, after bouncing off daily lows of 1.3404.

The US Department of Labor reported that Initial Jobless Claims for the week ending August 1 came in at 199K, exceeding the prior week’s print but below estimates of 202K. Earlier, the Challenger job cuts showed that planned layoffs tumbled 27% to 33.429K in July, its lowest level since July 2024. Read more...

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