Pound Sterling Price News and Forecast: GBP/USD weakened as the USD is buoyed by optimistic tone from Trump

FXStreet Team FXStreet

GBP/USD trades lower around 1.3300, retreats from seven-month highs due to US optimism

GBP/USD extended its losses during Wednesday’s Asian session, trading around 1.3300 after pulling back from a seven-month high of 1.3424 recorded in the previous session. The pair weakened as investor appetite shifted back toward US assets, including the US Dollar (USD), buoyed by a more optimistic tone from US President Donald Trump.

President Trump helped ease market concerns by affirming his support for Federal Reserve (Fed) Chair Jerome Powell, stating, “The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates.” Read more...

GBP/USD weakens below 1.3300 as US Dollar rises

The GBP/USD pair remains weak near 1.3280 during the early Asian session on Wednesday. Comments by US Treasury Secretary Scott Bessent hint at a thaw in US-China trade tensions, fueling optimism in markets and strengthening the US Dollar (USD) against the Pound Sterling (GBP).

Scott Bessent said on Tuesday that he expects a de-escalation in US President Donald Trump’s trade war with China in the very near future. He further stated that the tariff standoff with China cannot be sustained by both sides and that the world’s two largest economies will have to find ways to de-escalate. Read more...

GBP/USD retreats from YTD high past 1.34 on Fed turmoil

The Pound Sterling (GBP) reverses its course after reaching a daily high of 1.3423 due to concerns over the Federal Reserve (Fed) independence, spurred by United States (US) President Donald Trump's harsh comments against Fed Chair Jerome Powell. At the time of writing, GBP/USD is trading at 1.3383, up 0.17%.

Market participants continued to digest White House Economic Adviser Kevin Hassett's comments about US President Donald Trump looking for ways to oust Powell. This pushed GBP/USD to re-test the current year-to-date (YTD) peak before falling below 1.3400. 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 retreats toward 1.1700 on modest USD recovery

EUR/USD stays under mild bearish pressure and trades below 1.1750 on Friday. Although trading conditions remain thin following the New Year holiday and ahead of the weekend, the modest recovery seen in the US Dollar causes the pair to edge lower. The economic calendar will not feature any high-impact data releases.

GBP/USD struggles to gain traction, stabilizes near 1.3450

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 marginally lower on the day at around 1.3450 as market participants remain in holiday mood.

Gold climbs toward $4,400 following deep correction

Gold advances toward $4,400 and gains more than 1.5% on the day after suffering heavy losses amid profit-taking heading into the end of the year. Growing expectations for a dovish Fed policy and persistent geopolitical risks seem to be helping XAU/USD stretch higher.

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).