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

FXStreet Team FXStreet

GBP/USD consolidates above 1.3400 as softer USD offsets dovish BoE expectations

The GBP/USD pair kicks off the new week on a subdued note following Friday's good two-way price swings and holds steady above the 1.3400 round figure during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution before positioning for an extension of the recent goodish recovery from the 1.3250-1.3245 region, or the lowest level since early August, touched last Tuesday.

The US Dollar (USD) struggles to capitalize on its gains registered on Friday amid expectations of further interest rate cuts by the US Federal Reserve (Fed) this year. Apart from this, economic risks stemming from a prolonged US government shutdown, global trade frictions, and signs of weakness in the US economy keep the USD bulls on the defensive. This, in turn, is seen as a key factor offering some support to the GBP/USD pair. Read more...

GBP/USD Weekly Forecast: Pound Sterling awaits direction from key US inflation data

The Pound Sterling (GBP) found fresh buyers once again near the 1.3250 area when compared with the US Dollar (USD), pushing GBP/USD higher toward the 1.3500 threshold. GBP/USD buyers returned with a bang in the past week after an initial struggle, as the USD lost its upside momentum and incurred heavy losses against its major currency rivals.

Earlier in the week, the Pound Sterling faced headwinds from renewed US-China trade tensions-led risk aversion and weak UK employment data. The Office for National Statistics (ONS) showed on Tuesday, the UK Unemployment Rate rose to a four-year high of 4.8% in the three months to August, up from 4.7% in July. The Average Earnings growth fell to 4.7% in the three months to August. Read more...

Author

FXStreet Team

FXStreet

EUR/USD tumbles below 1.1800 as Middle East turmoil drives US Dollar demand

The EUR/USD pair falls to near 1.1770 during the early Asian session on Monday, pressured by a renewed US Dollar demand. The Greenback gathers strength against the Euro as the conflict across the Middle East is heightening traders' anxiety, boosting the safe-haven currencies.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

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.