Pound Sterling Price News and Forecast: GBP/USD shrugs as UK GDP unexpectedly declines

FXStreet Team FXStreet

GBP/USD shrugs as UK GDP unexpectedly declines

The British pound has edged lower against the US dollar on Friday. GBP/USD is trading at 1.2928 in the European session, down 0.13% on the day.

The UK economy barely registered any growth in the second half of 2024, rising 0.1% in the third quarter and flatlining in the third quarter. The New Year hasn’t seen any improvement, as GDP contracted 0.1% m/m in January, after a 0.4% gain in December and missing the market estimate of 0.1%. The surprise contraction was driven by declines in the production and manufacturing sectors. The economy expanded 0.2% in the three months to January, up from 0.1% in the three months to December but shy of the market estimate of 0.3%. Read more...

GBP/USD Forecast: Pound Sterling struggles to benefit from upbeat mood after weak UK data

After closing marginally lower on Thursday, GBP/USD stays on the back foot and trades below 1.2950 in the European session on Friday. Although the near-term technical outlook is yet to point to a buildup of bearish momentum, the pair could have a difficult time staging a rebound after disappointing data releases from the UK.

The data published by the UK's Office for National Statistics (ONS) showed early Friday that the UK's Gross Domestic Product (GDP) contracted by 0.1% on a monthly basis in January. This reading followed the 0.4% growth recorded in December and came in below the market expectation for an expansion of 0.1%. Read more...

GBP/USD outlook: Bulls pause under 1.3000 barrier but hold grip

Cable edged lower on Thursday but remains constructive near new multi-month high (1.2989) and psychological 1.3000 barrier.

Limited dips on Wednesday/today, support the notion, as weak dollar continues to underpin pound’s advance, along with bullish daily techs (the latest formation of 10/200DMA golden cross contributed to bullish outlook. On the other hand, bulls may face further headwinds as daily studies are overbought and 1.30 marks significant obstacle, which may cap and keep near term action in extended consolidation. Read more...

Author

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.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.