Pound Sterling Price News and Forecast: GBP/USD gains ground to near 1.3305 early European session

GBP/USD maintains positive ground above 1.3300, eyes Fed rate decision

The GBP/USD pair is trading in a stronger tone around 1.3305 during the early European session on Wednesday. The US dollar fell against the British pound, as the US Federal Reserve is widely expected to announce another interest rate cut on Wednesday. The UK monthly GDP report will be published later on Friday.

Markets had expected a roughly 90% chance that the US central bank would cut its benchmark overnight interest rate by 25 basis points at the conclusion of its two-day meeting on Wednesday. This will be the third rate cut this year, bringing the target range to 3.50%-3.75%. Read more…

GBP/USD extends mean retracement as investors brace for Fed

The GBP/USD pair pulled back towards the mid-range on Tuesday, shedding about one-fifth of one percent after facing intraday technical rejection from the 1.3350 level. Price action has pulled back to the 1.3300 level and is holding north of the longer-term 200-day Exponential Moving Average (EMA) near 1.3250 as markets await the Fed’s latest interest rate decision for 2025.

Investors are mainly focused on the Federal Reserve’s interest rate decision scheduled for Dec. 10, which is widely expected to result in a quarter-point cut for the third consecutive time. Fed funds futures currently indicate a cut probability of 87%, a significant increase from the previous month. Market participants believe that the outcome of this interest rate decision, coupled with Fed Chair Jerome Powell’s messages in one of his final press conferences before the interest rate decision, could impact market sentiment for the rest of December. This is especially true as markets grapple with persistent inflation, lagging economic data, and the ongoing transition toward new Fed leadership in 2026. Read more…

GBP/USD declines as US dollar rises on jobs data ahead of Fed meeting

The GBP/USD pair fell below key support seen at the 200-day simple moving average at 1.3331 and weakened by about 0.21% on Tuesday, as traders braced for the Federal Reserve’s policy decision on Wednesday. At the time of writing, the pair is trading below 1.3300 after reaching a high of 1.3356.

Economic data from the United States revealed that job openings in October rose from 7.658 million to 7.67 million, according to the US Bureau of Labor Statistics (BLS) Job Opportunities and Labor Turnover Survey (JOLTS). Based on the data, the pair fell below the 1.3300 level. Read more…

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