Pound Sterling Price News and Forecast: GBP/USD trades on a stronger note near 1.2663

FXStreet Team FXStreet

GBP/USD posts modest gains above the mid-1.2600s amid mixed US data

The GBP/USD pair posts modest gains above the mid-1.2600s during the early Asian trading hours on Friday. The decline of the US Dollar (USD) provides some support to the major pair. At press time, GBP/USD is trading at 1.2663, adding 0.02% on the day.

The US Initial Jobless Claims for the week ending February 17 fell to 201K from the previous weeks of 213K. Continuing Claims dropped to 1.862M, below expectations and the prior week. The report suggested the US labor market remains robust and might convince the Federal Reserve (Fed) to delay cutting interest rates. Read more...

Pound Sterling dips as geopolitical tensions shrink risk appetite

The Pound Sterling (GBP) comes under pressure in Thursday’s early New York session due to Middle East tensions and mixed preliminary PMIs reported by the S&P Global/CIPS for February. The Manufacturing PMI at 47.1 was slightly above the prior reading of 47.0 but failed to match expectations of 47.5. The Services PMI was surprisingly unchanged at 54.3, while investors anticipated a decline to 54.1. The Composite PMI was higher at 53.3 against expectations and the former reading of 52.9.

The GBP/USD pair falls on backfoot as Bank of England (BoE) policymaker Swati Dhingra cautioned about downside risks to the United Kingdom economy due to high interest rates. In her speech at the Market News International Connect event on Wednesday, Dhingra said the demand prospects are “weak and less resilient” than their previous forecasts. She added that higher mortgage costs and rental prices in 2023 shortened households’ pockets, which resulted in weak Retail Sales. Read more...

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FXStreet

EUR/USD flat around 1.1650 as hot US PPI, geopolitics freeze trade

EUR/USD consolidates on Wednesday, hoovers around the 1.1645, unchanged amid a risk-off mood sponsored by geopolitical risks, which kept traders on the sidelines. A scarce economic docket in the Eurozone, but a busy one in the US, revealed that factories input prices had risen and weighed on traders’ bets for a Fed rate cut in January.

GBP/USD trims gains, recedes toward 1.3420

Following its risk-linked peers, GBP/USD now faces some selling pressure and retreats toward the 1.3420 zone as US markets draw to a close on Wednesday. Moving forward, the British Pound is expected to closely follow Thursday’s data releases in the UK, including GDP figures.

Gold climbs above $4,600 as geopolitical tensions escalate

Gold price climbs to near $4,615 and is set to retest a record high during the early Asian session on Thursday. The precious metal extends its upside as traders flock to safe havens amid geopolitical and economic uncertainties. Traders brace for the weekly US Initial Jobless Claims report, which will be released later on Thursday.

Bitcoin shows strong correlation with institutional demand following 7% uptick

Bitcoin's price has largely tracked net institutional demand over the past year, according to Bitwise. Net institutional demand is the buying activity of global exchange-traded products and treasury companies minus new supply.

US economic outlook: January 2026

Jerome Powell's eight-year tenure as Chair of the Federal Reserve is coming to a close during a period of intense pressure on the US central bank and divided views among policymakers about the appropriate stance of monetary policy.

Hyperliquid gains momentum amid staking, Open Interest rebound

Hyperliquid is showing renewed strength, trading above $26.00 at the time of writing on Wednesday, as bulls regain control following a period of consolidation. The rebound is largely supported by improving on-chain metrics and growing derivatives market activity.