Pound Sterling Price News and Forecast: GBP/USD tumbles

FXStreet Team FXStreet

GBP/USD tumbles: Investors lose confidence in UK fiscal sustainability

The GBP/USD pair declined to 1.3366 on Wednesday, reflecting intensified selling pressure on the pound. Sterling’s weakness stems from a sharp rise in UK government bond yields and broader global concerns regarding fiscal stability.

The yield on 30-year gilts climbed to 5.695%, marking its highest level in 25 years. This surge highlights mounting borrowing costs and raises the risk of a debt spiral. Higher yields increase debt-servicing expenses, potentially forcing the government to borrow additional funds and further pushing yields upward. Read more...

GBP/USD Forecast: Pound Sterling recovery seems brittle as gilt yields edge higher

After falling more than 1% and registering its biggest one-day loss since April on Tuesday, GBP/USD touched its lowest level since early August at 1.3333 in the Asian session on Wednesday. Although the pair recovered above 1.3400 in the European trading hours, investors could refrain from betting on an extended rebound.

Growing concerns over the global fiscal health lifted borrowing costs of long-dated government bonds of major economies on Tuesday, opening the door for a flight to safety. Following Tuesday's sharp increase, the yield on the 30-year UK gilt touched its highest level since 1998 at 5.75% early Wednesday before retreating. In turn, Pound Sterling found support and managed to erase its daily losses. 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 moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

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.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.