Pound Sterling Price News and Forecast: GBP/USD rises from a two-month low

FXStreet Team FXStreet

British Pound recovers from two-month low ahead of BoE as Iran peace deal weigh on USD

The GBP/USD pair gains some positive traction during the Asian session on Thursday and moves away from its lowest level since April 7, around the 1.3260 region set the previous day. Spot prices retake the 1.3300 mark amid a modest US Dollar (USD) downtick, though the upside potential seems limited amid a bearish fundamental backdrop.

US President Donald Trump and Iranian President Masoud Pezeshkian electronically signed a Memorandum of Understanding (MoU) aimed at ending hostilities between the two countries and reopening the Strait of Hormuz. Furthermore, Trump said that the 60-day negotiation period to reach a final agreement on Iran's nuclear program is not a hard deadline, boosting investors' confidence. This, in turn, prompts some USD profit-taking, following the overnight hawkish Federal Reserve (Fed)-inspired rally to the highest level since late March, and lends support to the GBP/USD pair. Read more...

British Pound double-teamed by soft CPI and a hawkish Fed

The British Pound (GBP) spent Wednesday absorbing blows from both sides of the Atlantic. Softer than expected UK inflation set a heavy tone in the morning, and Kevin Warsh's hawkish first Federal Reserve (Fed) decision finished the job in the evening. GBP/USD had been drifting near 1.3400 into the announcement and then collapsed close to 140 pips, tearing through 1.3350 and the 1.3300 handle to a session low near 1.3250 before steadying just below the figure.

The morning's Consumer Price Index (CPI) gave the Pound its first knock, with the May reading rising just 0.2% on the month against expectations of 0.4% and core annual inflation easing to 2.6% from a forecast 2.7%. Headline annual inflation held at 2.8%, so this was a miss rather than a collapse, but it was enough to nudge Bank of England (BoE) cut expectations and leave Sterling soft into the US session. Read more...

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GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.