Pound Sterling Price News and Forecast: GBP/USD trades with mild gains around 1.3555 on Monday

FXStreet Team FXStreet

GBP/USD holds positive ground above 1.3550 as potential Fed rate cut looms

The GBP/USD pair posts modest gains near 1.3555 during the early Asian session on Monday. Traders expect the US Federal Reserve (Fed) to deliver its first rate cut of the year at its policy meeting on Wednesday, which might weigh on the US Dollar (USD). Later on Monday, the New York Empire State Manufacturing Index for September will be released.

Bets are strongly in favor of a Fed rate reduction at the September meeting on Wednesday, fueled by recent evidence of a weakening labor market. According to the CME FedWatch tool, traders are now pricing in a near 100% probability of a quarter-point rate cut at the upcoming meeting. A small minority even sees a possibility of a jumbo rate cut. Read more...

GBP/USD Weekly Forecast: Pound Sterling traders eye Fed and BoE decisions

The Pound Sterling (GBP) booked a third consecutive weekly gain against the US Dollar (USD), testing the 1.3600 barrier to reach monthly highs. It was all about the increased dovish sentiment surrounding the US Federal Reserve’s (Fed) path forward on interest rates, which smashed the US Dollar to the lowest level in seven weeks across its six major currency rivals.

The USD bearishness helped GBP/USD, while the Pound Sterling benefited from the expectations of policy divergence between the Fed and the Bank of England (BoE). Weakening labor market conditions in the United States (US) overshadowed sticky consumer inflation, ramping up calls for three rate cuts this year, starting next week. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD bounces toward 1.1750 as US Dollar loses strength

EUR/USD returned to the 1.1750 price zone in the American session on Friday, despite falling Wall Street, which indicates risk aversion. Trading conditions remain thin following the New Year holiday and ahead of the weekend, with the focus shifting to US employment and European data scheduled for next week.

GBP/USD nears 1.3500, holds within familiar levels

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades with modest intraday gains at around 1.3490 as market participants remain in holiday mood.

Gold trims intraday gains, approaches $4,300

Gold retreated sharply from the $4,400 area and trades flat for the day in the $4,320 price zone. Choppy trading conditions exacerbated the intraday decline, although XAU/USD bearish case is out of the picture, considering growing expectations for a dovish Fed and persistent geopolitical tensions.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).