Pound Sterling Price News & Forecast: GBP/USD declines as the US Dollar holds firm

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British Pound softens as Fed rate uncertainty supports US Dollar

GBP/USD edges lower after opening at a bullish gap, remaining within positive territory and trading around 1.3290 during the Asian hours on Tuesday. The currency pair is under pressure as the US Dollar (USD) stabilizes, driven by market caution ahead of the upcoming Federal Reserve policy decision due on Wednesday.

According to the CME FedWatch Tool, markets are pricing in nearly a 38% chance of a rate hike in July, an unusually high level of uncertainty so close to a meeting. Citadel Securities expects the Fed to deliver a rate increase to solidify Chairman Kevin Warsh’s inflation-fighting credibility following his repeated promises to restore price stability. Looking further ahead, the probability of at least a 25-basis-point hike in September currently sits at approximately 81.4%. Read more...

Britain's best data week of the summer sends British Pound Sterling to a four-week low

British Pound Sterling trades beneath 1.3300 against the Dollar on Monday, roughly 0.3% lower on the day and back at ground it last held in the opening days of July. It gets there at the end of the strongest run of British data since the spring, which is the part worth sitting with. The Dollar itself did close to nothing all session.

The past week handed Britain the sort of data run its currency has been waiting for. Retail sales rose 1% in June against expectations of a small decline, helped by warm weather and World Cup spending. Consumer confidence climbed to a six-month high in July, and preliminary business activity surveys put the private sector back into expansion ahead of forecasts. Read more...

British Pound tumbles as risk-off mood boosts the US Dollar

The Pound Sterling retreats by 0.13% even though the Greenback is flat during the day. Risk appetite shifted sour on news that a Chinese state-backed company is producing chipmaking machines, prompting a sell-off in ASML, the Netherlands-based company. The GBP/USD trades at 1.3305, after reaching a high of 1.3363.

The de-escalation of the Middle East conflict is a relief for major central banks as Oil prices slide as the US paused attacks on Iran over the weekend. The US President Donald Trump warned of further military action if negotiations between Washington and Tehran fail. He said that attacks would be “very powerful.” Read more...

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FXStreet Team

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AUD/USD consolidates near 0.7000 as USD stays weak

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US Dollar breaks below 101.50 as Democrats sweep Congress

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