Pound Sterling outperforms risky peers at the start of the week
The Pound Sterling (GBP) outperforms its risky currency peers, but faces selling pressure against safe-haven at the start of the week. The British currency gains on expectations that the Bank of England (BoE) will follow a gradual monetary easing cycle in 2026. The BoE stated in its last policy meeting of 2025 that the monetary policy will remain on a “gradual downward path” after reducing interest rates by 25 basis points (bps) to 3.75% with a 5-4 majority in December.
Market experts believe that the BoE favored a moderate easing campaign as the United Kingdom (UK) inflation is well above the 2% target despite cooling down in the last two months. The UK headline Consumer Price Index (CPI) inflation came down to 3.2% in November from the peak of 3.8% seen in September. Read more…
GBP/USD: Likely to trade between 1.3430 and 1.3490 – UOB Group
GBP is likely to trade sideways between 1.3430 and 1.3490. In the longer run, momentum indicators are mostly flat; GBP is likely to trade in a range between 1.3400 and 1.3535, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
24-HOUR VIEW: “GBP swung between 1.3435 and 1.3502 last Friday, closing modestly lower at 1.3462, down by 0.10%. There has been no clear shift in directional momentum. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-outperforms-risky-peers-at-the-start-of-the-week-202601051217
