Pound Sterling Price News and Forecast: GBP/USD stays flat on safe-haven demand amid Middle East tensions

FXStreet Team FXStreet

Pound Sterling moves little as safe-haven demand lifts US Dollar

GBP/USD steadies after registering nearly 1% gains in the previous day, trading around 1.3610 during the Asian hours on Friday. The pair moves little as the US Dollar (USD) gains ground on safe-haven demand amid the ongoing Middle East conflict.

Bloomberg reported on Thursday that US President Donald Trump stated he would continue the naval blockade of Iranian ports, amid concerns that the strategically important Strait of Hormuz may not reopen in the near term. Trump also criticized congressional efforts aimed at restricting his war powers, including a recent Senate proposal that was rejected earlier in the day. Read more...

GBP/USD runs out of gas after BoE hawkish hold ahead of Friday data deluge

GBP/USD rallied 0.96% on Thursday, settling near 1.3600 after a choppy session that saw cable test the 1.3455 area in the European morning before catching a sharp bid through the New York afternoon. The daily candle left a long lower wick from the morning low, with price stalling close to the 1.3600 round figure into the late session.

The Bank of England (BoE) left its main Bank Rate at 3.75% in an 8-1 vote, with chief economist Huw Pill the lone dissenter pushing for a 25 basis point hike. Governor Andrew Bailey leaned into second-round inflation risks during the press conference, signaling that the Monetary Policy Committee (MPC) is prepared to act pre-emptively if energy-driven price pressure begins feeding into wages. On the US side, the Personal Consumption Expenditures (PCE) Price Index rose 3.5% YoY in March, in line with forecasts, while preliminary Q1 Gross Domestic Product (GDP) growth printed at 2% against the 2.3% consensus, a softer undertone that weighed on the Dollar through the New York afternoon. Read more...

GBP/USD Price Forecast: Bullish-engulfing pattern looms, traders eye 1.3600

The GBP/USD pair advances by some 0.78% on Thursday as market participants continue to price in further tightening by the Bank of England (BoE), even though it kept rates steady earlier in the day. At the time of writing, the pair trades at 1.3581 as a technical ‘bullish engulfing’ chart pattern looms.

From a technical perspective, GBP/USD is neutral but tilted to the upside as the pair clears a key resistance trendline around 1.3560/65, clearing the way towards 1.3600. Momentum, as depicted by the Relative Strength Index (RSI), jumped sharply past the 60 reading, an indication that bulls are in charge. 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.

EUR/USD embarks on a consolidative move around 1.1600

EUR/USD rapidly leaves behind Friday’s small downtick and trades with solid gains on Monday, consolidating its daily advance around the 1.1600 region as the NA session draws to a close. Meanwhile, the improved risk appetite following the US-Iran deal and the reopening of the Strait of Hormuz continues to weigh on the US Dollar, lending support to the broader risk-linked galaxy.

GBP/USD retreats from tops, back to 1.3420

GBP/USD keeps its advance past the 1.3400 yardstick at the beginning of the week. In the meantime, Cable continues to draw support from improved market sentiment following reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold stays firm, still below $4,400

Gold builds on its recent gains on Monday, climbing well north of the $4,300 mark per troy ounce. The yellow metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.