Pound Sterling Price News and Forecast: GBP/USD turns lower for the third consecutive day

FXStreet Team FXStreet

GBP/USD Price Forecast: Descending channel breakdown comes into play ahead of Fed’s Powell

The GBP/USD pair turns lower for the third consecutive day and drops to a nearly two-week trough, below mid-1.3300s during the first half of the European session on Thursday amid the emergence of fresh US Dollar (USD) buying. In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, has climbed to a fresh high since early August despite dovish Federal Reserve (Fed) expectations and concerns about a prolonged US government shutdown.

Minutes from the September FOMC policy meeting published on Wednesday indicated near unanimity among participants to lower interest rates amid concern about labour market risks and a more balanced inflation outlook. Policymakers, however, remained split on whether there should be one or two more rate reductions before the end of this year. Nevertheless, the overall tone was cautious and pointed to a continued easing bias. Read more...

GBP/USD halts decline but inflation risks linger

The GBP/USD pair attempted to stabilise on Thursday, trading around 1.3413 USD. However, investor sentiment remains cautious amid a weak outlook for the UK economy and uncertainty surrounding the government's November budget.

UK GDP growth is projected to remain moderate through year-end, while inflation is forecast to rise to 4% – double the Bank of England's target. Recent data confirm the economy is losing momentum after a strong start to 2025. Read more...

GBP/USD pair stuck in narrow range amid US govt shutdown

Sterling continues to be largely driven by news headlines elsewhere, and has subsequently tracked the euro fairly closely in the past few weeks.

The GBP/USD pair has also been stuck in a fairly narrow range in the past fortnight, with the government shutdown across the Atlantic so far exerting very minimal selling pressure on the greenback. Read more...

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD sticks to neutral bias above 0.7100 amid cautious markets

AUD/USD holds steady above 0.7100 in the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. The PBOC status quo on Loan Prime Rates also weighs on the Aussie. However, bets on another RBA rate hike continue to underpin the Australian Dollar ahead of the Trump-Xi Summit.

USD/JPY eases below 157.00 amid looming intervention risks

USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check. A Japanese holiday also keeps traders on edge amid escalating geopolitical tensions between Russia and Ukraine and in the Middle East. As a result, the US Dollar pauses its pullback, limiting the pair's downside.

Gold remains depressed around $4,350 amid rate jitters, modest USD strength

Gold maintains its offered tone through the first half of the European session, and currently trades around $4,350, down over 0.50% for the day. The commodity, however, holds comfortably above a six-week low, touched last Wednesday as traders await further developments around the Middle East crisis and their implications for inflation. This, in turn, would influence interest rate expectations and, in turn, drive the non-yielding bullion.

Zcash holds above $1,500 amid Grayscale ETF stock split, NU7 upgrade

Zcash is trading above $1,500 after more than 40% gains last week, driven by institutional inflows and broader crypto market recovery. Grayscale’s ZEC-focused Exchange-Traded Fund (ETF) recorded $98.21 million in inflows last week, while developers focus on the NU7 upgrade to boost its private payment speed.

The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.