Pound Sterling Price News & Forecast: GBP/USD attracts strong follow-through buying

British Pound strengthens beyond mid-1.3300s vs weak USD amid fresh Iran diplomacy hopes

The GBP/USD pair builds on Friday's modest bounce from a three-week low and gains strong follow-through positive traction at the start of a new week. This marks the second straight day of a positive move and lifts spot prices above mid-1.3300s during the Asian session amid a broadly weaker US Dollar (USD).

The USD Index (DXY), which tracks the Greenback against a basket of currencies, moves away from the vicinity of the monthly high, retested last week, amid reviving hopes for a diplomatic resolution to end a five-month-old US-Iran conflict. In fact, the US paused its bombing campaign following 13 consecutive nights of strikes on Iranian targets late on Friday, prompting Tehran to suspend its retaliatory attacks against Washington's allies in the Middle East. Read more...

British Pound rises as Oil slide softens USD, Fed hike bets increase

The Pound Sterling advances by some 0.20% on Friday as Oil prices tumble, weighing on the US Dollar, while the US-Iran conflict signals a further escalation, which market participants ignored. Despite registering daily gains, the GBP/USD is poised to finish the week with losses of nearly 0.70%.

Risk appetite has improved as Pakistan’s efforts to help resume talks between the US and Iran provided a tailwind for risk assets. Meanwhile, the US President Trump revealed that China and Russia are not “giving or selling weapons” to Iran, he posted on his Truth Social network. In the meantime, an article in the Wall Street Journal states that “Trump is losing patience over an Iran war with no clear end in sight,” which opens the door to further escalation, as revealed by some US officials. Read more...

British Pound: Strong UK data fail to lift GBP against US Dollar – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret report the British Pound (GBP) is slightly higher versus the US Dollar (USD) but lagging most G10 peers. Markets are discounting strong United Kingdom (UK) retail sales and Purchasing Managers' Index (PMI) surprises ahead of next week’s expected Bank of England (BoE) hawkish hold. Rate markets price modest tightening by September and November, while options show renewed demand for downside protection in GBP.

"Market participants are clearly not responding to fundamentals and ignoring the release of (far) stronger than expected retail sales data for June alongside a solid surprise to the preliminary PMI’s for July – the latter offering decent levels of expansion in manufacturing (52.8) while also delivering an unexpected recovery out of (sub-50) contraction in services with a print of 51.8." Read more...