Pound Sterling Price News & Forecast: GBP/USD edges higher after remaining flat in the previous day

British Pound gains ground as US Dollar struggles ahead of Fed decision

GBP/USD edges higher after remaining flat in the previous day, trading around 1.3300 during the Asian hours on Wednesday. The currency pair gains ground as the US Dollar (USD) struggles ahead of the Federal Reserve’s (Fed) upcoming policy decision.

While the central bank is widely expected to leave interest rates unchanged, traders are currently pricing in an unusually high 30.5% chance of an immediate rate hike, signaling notable uncertainty ahead of the announcement. Looking further ahead, markets are factoring in a 76.6% probability of a rate increase in September, reinforcing expectations that borrowing costs will remain elevated for longer. Read more...

British Pound Sterling waits on a forecast the tape has already outrun

The Pound spends Tuesday almost perfectly still, trading just under 1.3300 with a session range under 40 pips between a floor above 1.3250 and a ceiling fractionally above 1.3300. That is a second consecutive day of near-total inertia beneath a shelf that took three weeks of defence to break, and it arrives with two central bank decisions and the Federal Reserve's preferred inflation gauge all landing inside three days.

Inertia this deep into a week that heavy is not indecision so much as a verdict, and the verdict is that Sterling is not the variable being solved for. The Dollar Index sits near a five-week high, the front end of the American curve still carries a live hike tail into Wednesday, and the British contribution this week is a document nobody expects to change the rate. Read more...

GBP/USD Price Forecast: Trades vulnerably near 1.3300 ahead of Fed-BoE policy

The British Pound (GBP) trades with caution at around 1.3300 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair is marginally higher, but is broadly under pressure, with investors turning cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.

Investors expect the Fed to leave interest rates unchanged in the range of 3.50%-3.75% and warn of upside inflation risks. However, United States (US) President Donald Trump said on Monday that Fed Chairman Kevin Warsh should lower interest rates, adding that there was a good inflation report recently, costs were falling rapidly, and that prices should drop significantly once the Gulf War ends. Read more...