Pound Sterling Price News and Forecast: GBP/USD trades around 1.3450

GBP/USD Price Forecast: Trades around 1.3450; bulls retain control above 100-hour SMA

The GBP/USD pair gains follow-through positive traction for the second straight day and sticks to modest intraday gains through the first half of the European session on Wednesday. Spot prices, however, lack bullish conviction and currently trade just above mid-1.3400s, up less than 0.10% for the day.

The latest optimism over a diplomatic resolution to end the five-month-old war in the Middle East and the reopening of the Strait of Hormuz dragged crude oil prices to a four-week low, easing inflation fears. Traders were quick to react and trimmed their bets for an imminent Fed rate hike. This, in turn, undermines the safe-haven US Dollar (USD), which is seen acting as a tailwind for the GBP/USD pair. Read more...

British Pound grinds higher above 1.3450 ahead of US ADP Employment release

The GBP/USD pair posts modest gains near 1.3455 during the early European session on Wednesday, bolstered by softer US economic data and cooling US-Iran tensions. Traders brace for the US ADP Employment and ISM Services Purchasing Manager Index (PMI) reports, which are due on Wednesday. Markets might turn cautious later this week ahead of the US July jobs data. 

The US JOLTS Job Openings declined to 7.359 million in June, compared to the 7.537 million openings reported in May, the US Bureau of Labor Statistics showed on Tuesday. This figure came in below the market expectation of 7.4 million. Read more...

British Pound weakens as US Dollar gains despite easing safe-haven demand

GBP/USD edges lower after registering modest gains in the previous day, trading around 1.3450 during the Asian hours on Wednesday. The currency pair came under selling pressure as the US Dollar (USD) gained momentum, bolstered by a rebound in the benchmark 10-year US Treasury yield, which had dipped toward 4.61% on Tuesday. That initial slide in yields was driven by falling energy prices, which helped cool inflation fears and tempered expectations of a hawkish response from the Federal Reserve (Fed).

However, the Greenback may face further challenges due to easing safe-haven demand amid building diplomatic momentum around a potential agreement to reopen the Strait of Hormuz. Qatari officials announced on Tuesday that an interim proposal had been drafted, with both Washington and Tehran signaling tangible progress toward restoring access to the critical maritime transit route. This diplomatic breakthrough follows US President Donald Trump’s decision to suspend planned military strikes against Iran, choosing instead to give negotiations space while maintaining his call for the immediate reopening of the waterway. Read more...