Pound Sterling Price News & Forecast: GBP/USD clings to weekly gains amid weakness in the US Dollar

FXStreet Team FXStreet

GBP/USD Price Forecast: Extends recovery to near 20-day EMA as US Dollar weakens

The Pound Sterling (GBP) holds onto weekly gains around 1.3565 against the US Dollar (USD) during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States (US) trade policy outlook.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally lower to near 97.55. Read more...

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

The Office for National Statistics (ONS) reported that UK Consumer Price Index (CPI) inflation fell to 3.0% in January from 3.4% in December, a sharper decline than expected and the lowest reading since mid-2025. The drop bolstered expectations that the Bank of England (BoE) will cut rates at its March 19 meeting, with markets now pricing roughly 80% odds of a 25 basis point reduction. Governor Andrew Bailey, testifying before parliament's Treasury Committee on Tuesday, had already called a March cut "a genuinely open question," while noting that services price inflation at 4.4% has not eased as much as the BoE had forecast. Chief Economist Huw Pill echoed the caution, warning against being "beguiled" by headline inflation falling toward the 2% target. UK labor data earlier in the week showed unemployment rising to a five-year high of 5.2%, further supporting the case for easing. Read more...

GBP/USD climbs as US Dollar stalls amid trade uncertainty

The Pound Sterling (GBP) advances during the North American session on Wednesday as the Greenback remains unchanged amid uncertainty over US trade policies, with investors awaiting results of one of the seven megacap companies after the Wall Street close. At the time of writing, GBP/USD trades at 1.3523, up 0.29%.

The scarce economic data in the US and the UK left traders adrift to comments by Federal Reserve (Fed) and Bank of England (BoE) officials, along with investors’ expectations for monetary policy. Read more...

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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.

GBP/USD stays below 1.3400 after soft UK CPI data

GBP/USD struggles to gain traction and stays below 1.3400 in the second half of the day on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, making it difficult for the British Pound gather recovery momentum. Meanwhile, investors keep a close eye on headlines coming out of the Middle East.

EUR/USD stabilizes near 1.1400 as markets focus on geopolitics

EUR/USD trades in a narrow channel at around 1.1400 on Wednesday. In the absence of high-impact data releases, escalating geopolitical tensions in the Middle East caps the pair's upside. On Thursday, the European Central Bank (ECB) will announce monetary policy decisions.

Gold holds gains above $4,100 undaunted by risk-off markets

Gold extends gains for the fourth consecutive day, standing comfortably above $4,100, unfazed by the risk-off market amid rising tensions in Iran and higher Oil prices. The pair has rallied nearly 2.5% so far this week and is on track for its best weekly performance in more than three months.

XRP consolidates as inflows and volume climb

Ripple (XRP) retains a slightly bullish outlook on Wednesday despite logging a minor correction from the supply range near $1.15. The remittance token is down 0.5% on the day, reflecting a broader cryptocurrency market drawdown, primarily driven by persistent geopolitical tensions between the United States (US) and Iran in the Middle East.

US – Fed preview: A divided hold

The first month after Kevin Warsh's debut at the FOMC's June meeting has brought mixed signals on the inflation front. On one hand, the re-escalation of the war in Iran has lifted energy prices higher again. Yet on the other hand, Warsh's hawkish comments have already lifted real rates, supported broad USD and tightened financial conditions while realized inflation surprised to the downside in June.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.