Pound Sterling Price News and Forecast: GBP/USD slips as the USD gains strength amid heightened risk aversion

FXStreet Team FXStreet

GBP/USD holds losses near 1.2650 as risk aversion intensifies, US Treasury yields climb

GBP/USD depreciates after two consecutive sessions of gains, trading around 1.2660 during Asian hours on Thursday. The pair loses ground as the US Dollar (USD) strengthens amid increased risk aversion and rising US Treasury yields.

Federal Reserve Bank of Atlanta President Raphael Bostic stated late Wednesday that the Fed should maintain current interest rates to continue applying downward pressure on inflation, according to Bloomberg. Bostic noted the need for more data to determine if January’s inflation was a temporary bump or the start of a trend. He emphasized that Fed policy remains restrictive and should stay that way. Read more...

GBP/USD runs out of bullish gas at key technical levels

GBP/USD briefly tested a fresh 10-week high on Wednesday, piercing 1.2700 for the first time since mid-December. However, souring risk sentiment took hold during the US market session, dragging Cable back down into near-term consolidation and keeping the pair chained south of the 200-day Exponential Moving Average (EMA).

Always ready to seize an opportunity, President Trump issued fresh tariff threats on Wednesday, expanding his proposed import taxes to encompass a 25% tariff on European products. While specifics remain unclear, he revealed his plan to implement additional tariffs on European items, mentioning “cars and other things.” He also reiterated his stance that the US does not “need” Canadian crude oil or lumber, confirming that tariff packages of 25% on both Canada and Mexico are forthcoming. However, he once again postponed the timeline by announcing that the confirmed tariffs on Canada and Mexico will now be effective starting April 2nd. Read more...

GBP/USD climbs to fresh 10-week highs on Wednesday

GBP/USD coasted into a fresh 10-week high on Wednesday, clipping the 1.2700 handle for the first time since mid-December. Hopeful bulls bid Cable higher for no other reason than there doesn't seem to be any bad news on the horizon, at least for now.

The Pound Sterling (GBP) is enjoying a nice reprieve from any geopolitical or economic headlines: the United Kingdom (UK) looks set to continue missing the majority of United States (US) President Donald Trump's ire on trade or other factors, at least for the time being. The Bank of England's (BoE) current rate trajectory is still pointing at three more rate cuts in 2025, but further rate cuts from the BoE are fully priced in. Read more...

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FXStreet

EUR/USD: Breakdown below trading range support near 1.1770 comes into play

The EUR/USD pair opens with a bearish gap at the start of a new week as the US-Iran war-led global flight to safety boosts the US Dollar. Spot prices, however, lack follow-through selling and manage to hold above mid-1.1700s during the Asian session.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold jumps over 2% toward $5,400 after US, Israel attack Iran

Gold is on fire at the start of the week, a widely expected move, as investors seek harbor in the traditional store of value, following the continued US and Israel attacks on Iran. The bright metal opened with a bullish gap of about $17 and rallied toward the $5,400 level as Asian traders hit their desks and reacted negatively to the weekend news of the Middle East conflict, rushing for cover in Gold.

Iran escalation: Quick thoughts on markets

Markets are likely to open the week with risk-off, with declines led by airlines, cyclicals and trade-exposed names, while energy, defense and “strategic” sectors may be relatively steadier.

Crisis in the Middle East: The market reaction

A primer on how markets will open on Monday, and why geopolitical risk may not be easily absorbed by financial markets this time around. Geopolitics and events between Iran, the US and the wider Middle East will dominate financial markets on Monday. The situation has continued to escalate as we move through Sunday.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.