Pound Sterling Price News and Forecast: GBP/USD risk aversion takes hold

FXStreet Team FXStreet

GBP/USD at two-week low: Risk aversion takes hold

GBP/USD attempted to rebound from a two-week low of approximately 1.3485 on Thursday. Investors are moving away from riskier assets amid concerns about the economic impact of an energy shock triggered by a fresh escalation in the Middle East.

The market is digesting Prime Minister Andy Burnham’s address to the House of Commons. He reaffirmed the government’s commitment to fiscal discipline and reducing the debt burden. The Prime Minister also noted that bringing forward the budget submission date should help reduce speculation about future fiscal measures. Chancellor John Healy’s first major statement on the government’s programme is expected as early as next week. Read more...

British Pound gains capped as fiscal, geopolitical risks persist

GBP/USD gains after two days of losses, trading around 1.3500 during the European hours on Thursday. The currency pair experiences an upward push as a sharp rally in the Japanese Yen (JPY) weighed heavily on the US Dollar (USD). This sudden Yen surge was largely driven by market speculation that Japanese authorities conducted a rate check, signaling potential direct intervention in foreign exchange markets.

Adding to the Greenback's troubles, recent economic data highlighted a slowdown in US private-sector employment for August, where ADP figures showed only 38,000 positions added against an expected 47,000. Despite these cooling labor signals, financial markets are still pricing in roughly a two-thirds probability of a Federal Reserve interest rate hike later this month, leaving traders eagerly awaiting upcoming jobless claims and Friday’s comprehensive payrolls report for clearer policy direction. Read more...

GBP/USD Price Forecast: Holds a mildly bullish bias near 1.3500 despite subdued RSI momentum

The GBP/USD pair trades in positive territory around 1.3490 during the early European trading hours on Thursday, bolstered by a weaker US Dollar (USD). Traders await the Bank of England (BoE) Governor Andrew Bailey’s speech and US August jobs data later on Friday for fresh impetus.

Federal Reserve (Fed) Chair Kevin Warsh delivered unexpectedly hawkish remarks at the Jackson Hole meeting last week, boosting market expectations for a rate hike next month. Warsh pledged to return inflation to the 2% target and indicated rates could rise further. Read more...

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

USD/JPY extends sell-off toward 156.00 on hawkish BoJ repricing

USD/JPY remains under persistent selling pressure and tests 156.00 in the second half of the day on Thursday. Hawkish BoJ expectations and intervention risks continue to lend support to the Japanese Yen and weigh on the pair as investors await August ISM Services PMI data from the US.

AUD/USD ranges above 0.7150 despite upbeat Chinese PMI

AUD/USD struggles to capitalize on the previous day's bounce from a nearly two-week low and ranges above 0.7150 in Asia on Thursday, as dismal Australian trade data counter upbeat China's RatingDog Services PMI. However, the pair's upside remains in check as the US Dollar stalls the weak ADP report-led slide amid escalating US-Iran tensions and firming September Fed rate-hike bets.

Gold sticks to gains below $4,450 amid weaker USD

Gold maintains its bid tone heading into the European session, though it remains below $4,450 amid mixed fundamental cues. Sliding US bond yields and Wednesday's soft US ADP report weigh on the US Dollar, assisting the commodity build on the previous day's goodish recovery from a nearly four-week low. That said, firming US Federal Reserve rate-hike expectations and inflation risks stemming from higher energy prices could act as a tailwind for US bond yields.

XRP defends key support, XLM awaits breakout as derivatives strengthen

Ripple (XRP) and Stellar (XLM) show divergent technical outlooks as traders assess whether the recent weakness could give way to a recovery. XRP is finding support and defining a key support zone, while XLM slips below a cluster of Exponential Moving Averages (EMAs).

ISM Services PMI Preview: US service sector expected to expand in August

On Thursday, we’ll get the latest read on the US service sector when the Institute for Supply Management publishes its August gauge. Consensus points to a marginal improvement to 54.3 from July’s 54.1. If confirmed, the reading would reinforce the sector’s resilience and offer a modest boost to confidence in the broader economy. The ISM will publish the Services Purchasing Managers Index (PMI) on Thursday at 14:00 GMT.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.