Pound Sterling Price News and Forecast: GBP/USD rises amid mounting expectations of Fed rate cut

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GBP/USD gains near 1.3250 amid rising Fed rate cut bets

GBP/USD continues its winning streak for the seventh successive session, trading around 1.3240 during the Asian hours on Friday. The pair strengthens as the US Dollar (USD) weakens amid growing expectations of a Federal Reserve (Fed) rate cut in December.

According to the CME FedWatch Tool, markets are now pricing in over an 87% chance of a 25 bps cut at the upcoming December meeting, a sharp rise from the 39% probability seen just a week earlier. Traders are also anticipating three additional rate cuts by the end of 2026. Read more...

GBP/USD steady at 1.3230 as UK budget offsets US Dollar pressure

The GBP/USD pair remains steady at around 1.3230 on Thursday as market participants digest the UK’s Autumn Budget amid thin trading liquidity conditions, with US markets remaining closed in observance of the Thanksgiving holiday. At the time of writing, the pair is flat at 1.3232, virtually unchanged.

European bourses trade with a positive mood after Wall Street ended Wednesday’s session in the green ahead of the long weekend. The UK Chancellor Rachel Reeves revealed the Autumn Budget. Read more...

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GBP/USD gathers strength above 1.3350, but stays capped below 100-day average

The GBP/USD pair trades in positive territory around 1.3360 during the early European session on Friday. The British Pound gathers strength against the US Dollar on a weaker-than-expected US Nonfarm Payrolls report.

EUR/USD trades cautiously higher near mid-1.1400s amid mixed setup

The EUR/USD pair attracts some dip-buyers during the Asian session on Friday, stalling the previous day's modest pullback from the 1.1470-1.1475 region, or a nearly two-week high. Spot prices currently trade just below mid-1.1400s and seem poised to register gains for the first time in three weeks as receding US Federal Reserve rate hike bets keep the US Dollar depressed.

Gold advances to $4,200 neighborhood amid reduced Fed hike bets

Gold is seen building on this week's recovery move from its lowest level since November 2025 and gaining positive traction for the third straight day. The precious metal advances to the $4,200 neighborhood, or a one-and-a-half-week high, during the Asian session and remains on track to register gains for the first time in five weeks.

Bitcoin and Ethereum rebound as bulls return, XRP targets breakout

Bitcoin, Ethereum and Ripple extend their recovery on Friday as improving risk sentiment and strengthening technical indicators support the broader cryptocurrency market. BTC reclaims the $61,300 level after rebounding from a 21-month low earlier this week, while ETH holds firm near $1,700 following a sharp two-day recovery.

Economics week ahead

Market attention turns to next week's FOMC minutes for any signs of what could shift a divided Committee from a hold toward rate hikes. The dot plot from the last meeting made clear that policymakers are split on whether rate hikes are warranted, but with forward guidance getting tamped down under Chair Warsh, the Fed's reaction function remains uncertain in terms of what exactly would build broader support for more restrictive policy.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.