Pound Sterling Price News and Forecast: GBP/USD rises as the US Dollar weakens amid fears of US recession

FXStreet Team FXStreet

GBP/USD maintains position near 1.2900 as concerns over US economic growth persist

The GBP/USD pair recovers recent losses from the previous session, trading around 1.2890 during Asian hours on Tuesday. The pair edges higher as the US Dollar (USD) struggles amid concerns that tariff policy uncertainty could push the US economy into recession.

Weaker-than-expected US job data for February has strengthened expectations of multiple Federal Reserve (Fed) rate cuts this year. LSEG data shows that traders now anticipate a total of 75 basis points (bps) in cuts, with a June rate reduction fully priced in. Read more...

GBP/USD holds above 1.2900 as traders brace of US CPI data

The Pound Sterling (GBP) consolidates within familiar levels against the US Dollar (USD) amid a scarce economic docket on Monday. Key United States (US) inflation data and the United Kingdom's (UK) Gross Domestic Product (GDP) figures are due later in the week. GBP/USD trades at 1.2915, up 0.04%.

Sentiment remains dismal due to concerns about US President Donald Trump's trade policies. On Friday, he said that his policies could lead to economic turbulence in the short term due to undergoing a “period of transition” because what he’s doing is very “big.” Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD retreats toward 1.1700 on modest USD recovery

EUR/USD stays under mild bearish pressure and trades below 1.1750 on Friday. Although trading conditions remain thin following the New Year holiday and ahead of the weekend, the modest recovery seen in the US Dollar causes the pair to edge lower. The economic calendar will not feature any high-impact data releases.

GBP/USD struggles to gain traction, stabilizes near 1.3450

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades marginally lower on the day at around 1.3450 as market participants remain in holiday mood.

Gold climbs toward $4,400 following deep correction

Gold advances toward $4,400 and gains more than 1.5% on the day after suffering heavy losses amid profit-taking heading into the end of the year. Growing expectations for a dovish Fed policy and persistent geopolitical risks seem to be helping XAU/USD stretch higher.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).