Pound Sterling Price News and Forecast: GBP/USD weakens to near 1.3480 on Wednesday

FXStreet Team FXStreet

GBP/USD Price Forecast: Keeps bullish vibe, first upside target emerges above 1.3550

The GBP/USD pair attracts some sellers to around 1.3480 during the Asian trading hours on Wednesday. The Greenback strengthens against the Pound Sterling (GBP) on the economic signs in the United States (US).

Data released by the Conference Board on Tuesday showed that the US Consumer Confidence Index rose to 98.0 in May from 86.0 (revised from 85.7). The Minutes of the Federal Open Market Committee (FOMC) will take center stage later on Wednesday. Read more...

GBP/USD: Poised to buckle under the weight of its own success?

GBP/USD pared recent gains on Tuesday, snapping a six-day win streak and knocking price action away from the 1.3600 handle after the pair tapped fresh multi-year highs this week. Another tariff-talk-fueled upswing in broad-market investor sentiment bolstered the US Dollar (USD), sparked by the Trump administration once again stepping back from its own tariff threats.

The Bank of England (BoE) is looking less likely to deliver as many rate cuts as many had expected earlier in the year, helping to bolster the Pound Sterling into its highest prices against the Greenback since early 2022. Further appearances from BoE policymakers are expected over the rest of the week, but the narrative is not expected to change much. Read more...

GBP/USD eases from three-year high as US Dollar steadies on trade hopes

The British Pound (GBP) edges lower against the US Dollar, retreating from a three-year high, with the GBP/USD pair trading around 1.3510 during the American session on Tuesday.

The mild correction in spot prices comes as the US Dollar found footing on renewed trade optimism between the US and the EU. Hopes of a breakthrough in tariff negotiations between Washington and Brussels have lifted risk sentiment, lending modest support to the Greenback after weeks of pressure from fiscal concerns and a cautious Federal Reserve (Fed) stance. Read more...

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GBP/USD stays offered near 1.3370

GBP/USD remains on the back foot, slipping back toward the 1.3370 zone on Tuesday. Cable has come under pressure soon after testing the 1.3400 neighbourhood as investors turned more cautious in response to renewed effervescence on the geopolitical front.

EUR/USD stays offered below 1.1450

EUR/USD remains on the back foot ahead of the opening bell in Asia, returning to the low-1.1400s on the back of the resurgence of the demand for the US Dollar. Indeed, renewed jitters in the Middle East support the safe haven universe and weigh on the sentiment surrounding the risk complex. Moving forward, investors’ attention should shift to Wednesday’s FOMC Minutes.

Gold weakens toward $4,100

Gold adds to Monday’s decent pullback and trades close to the $4,100 mark per troy ounce on Tuesday. In the meantime, fresh geopolitical effervescence appear to have reignited inflation concerns, which in turn, limit any recovery attempt from the precious metal.

RBNZ set to increase interest rate after three pauses amid deeply divided committee

The Reserve Bank of New Zealand is widely expected to raise the Official Cash Rate by 25 basis points from 2.25% to 2.50% on Wednesday, snapping a three-consecutive-meeting pause.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance, arguing that the current world demands more flexibility.