Pound Sterling Price News: GBP/USD may decline further from expectations that the Fed will keep rates unchanged

FXStreet Team FXStreet

GBP/USD remains below 1.3400 as US Dollar gains on Fed caution bets

GBP/USD edges higher after registering modest losses in the previous session, trading around 1.3380 during the Asian hours on Friday. The pair may further lose ground as the US Dollar (USD) receives support after Thursday’s US Initial Jobless Claims data, which reinforced expectations that the Federal Reserve (Fed) will keep interest rates on hold for the coming months.

Data from the US Department of Labor (DOL) showed Initial Jobless Claims unexpectedly fell to 198K in the week ended January 10, below market expectations of 215K and down from the prior week’s revised 207K. The data confirmed that layoffs remain limited and that the labor market is holding up despite an extended period of high borrowing costs. Read more...

GBP/USD slides toward 1.3370 as strong US data powers US Dollar rally

The British Pound (GBP) loses ground against the US Dollar (USD) on Thursday as solid economic data in the US trumps an upbeat Gross Domestic Product (GDP) report in the United Kingdom (UK). At the time of writing, GBP/USD trades at 1.3367, down 0.53%.

Investors’ mood improved on Thursday due to a strong Initial Jobless Claims report for the week ending January 10. The print was below the 215K projection, at 198K, well below the prior’s number of 207K. At the same time, the New York Empire State Manufacturing Index for January improved from -3.7 to 7.7. Meanwhile, the Philadelphia Fed Manufacturing Survey for the same period exceeded estimates of -2 and jumped sharply by 12.6. Read more...

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FXStreet

EUR/USD defends 1.1600 amid renewed US Dollar weakness

EUR/USD defends ground above 1.1600 in European trading on Friday. The US Dollar meets fresh supply amid a better market mood, despite receding bets for Fed rate cuts, lending some support to the pair. Fedspeak awaited.

GBP/USD grinds higher to 1.3400 as US Dollar turns south

GBP/USD edges higher to test 1.3400 in the European session on Friday after registering modest losses in the previous session. The pair draws support from a renewed bout of selling seen around the US Dollar as risk sentiment improves. The focus now turns to geopolitical developments and Fedspeak.

Gold steadies near $4,600 due to risk-on mood, Fed caution bets

Gold hovers around $4,600 during the early European hours on Friday. However, Gold prices fell amid decreasing safe-haven demand as geopolitical risks in Iran temporarily eased. US President Donald Trump signaled he may delay military action after Iran pledged not to execute protesters.