Pound Sterling Price News and Forecast: GBP/USD struggles to gain any meaningful traction

FXStreet Team FXStreet

British Pound consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

The crucial US Consumer Price Index (CPI) report will play a key role in influencing market expectations about the US Federal Reserve's (Fed) rate-cut path. This, in turn, will drive the US Dollar (USD) demand and provide some meaningful impetus to the GBP/USD pair. Ahead of the key data risk, the markets are pricing in a greater chance that the US central bank will cut interest rates at least two times in 2026, which keeps the USD bulls on the defensive. Read more...

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England (BoE) held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%. Governor Andrew Bailey voted with the majority to hold but said he sees "scope for some further easing" and expects "a sharp drop in inflation over coming months," with the BoE projecting CPI to fall back to the 2% target by April. UK Q4 2025 Gross Domestic Product (GDP) data released on February 12 showed growth of just 0.1%, with monthly GDP for December also rising 0.1%, confirming the sluggish pace of the UK economy. Sterling found some support from easing domestic political uncertainty after Prime Minister Keir Starmer secured backing from senior cabinet members following the resignation of his chief of staff Morgan McSweeney amid the Lord Peter Mandelson scandal.

On the US side, January Non-Farm Payrolls (NFP) came in at 130K with unemployment at 4.3%, pushing the expected timing of the next Federal Reserve (Fed) rate cut from June to July. Friday's delayed US Consumer Price Index (CPI) release for January is the week's most important event, with consensus expecting headline CPI at 0.29% month-on-month and core CPI at 0.39% month-on-month. A softer reading would weaken the US Dollar and likely push Cable back toward its late-January high. Read more...

GBP/USD climbs as jobless claims dent USD despite soft UK GDP

The Pound Sterling (GBP) rallies during the North American session on Thursday versus the US Dollar (USD) after new jobs data in the US contradicts a stellar Nonfarm Payrolls report released a day ago. Meanwhile, the UK economy grew weaker than expected, yet the British Pound continues to trade with gains. GBP/USD trades at 1.3664, up 0.28%.

The Greenback is extending its losses after the latest Initial Jobless Claims report from the US Department of Labor witnessed a slight rise. Claims for the week ending February 7 rose by 227K, down from a previous print of 232K but exceeded forecasts of 222K. Read more...

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FXStreet

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD weakens to near 1.3300 as geopolitical risks bolster US Dollar

The GBP/USD pair attracts some sellers to around 1.3310 during the early European session on Wednesday. Escalating conflict in the Middle East triggers a "flight to safety," supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold sticks to intraday gains above $5,150; upside seems limited amid bullish USD

Gold preserves its modest intraday gains through the Asian session on Wednesday and currently trades just above the $5,150 level, up around 1.30% for the day. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

When rates start driving the bus through a war zone

The volatility regime itself is also changing character. EM carry trades thrive in calm markets. They suffocate in environments that resemble Buckaroo Banzai trading conditions, where headlines move faster than models. That is exactly the world investors are now trying to recalibrate to. Euro rate volatility had been remarkably subdued even while equities were wobbling. That stability is now being questioned, and once volatility leaks into rates it rarely stays contained. Indeed, carry trades love calm seas. War turns the ocean into white water.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.