GBP/USD retreats to 1.3780 area with markets bracing for the Fed
The Pound is trimming gains against the US Dollar on Wednesday, trading a few pips above 1.3780 at the time of writing, down from its highest levels in more than 4 years, at 1.3868. The Greenback has regained some of the ground lost over the last few days, as investors scale down USD shorts ahead of the Federal Reserve’s (Fed) monetary policy decision.
US President Trump’s comments, praising the current U.S. dollar value on Tuesday, added pressure on a currency that was already on the ropes. The US’s erratic trade policies, growing government spending, and the attacks on the Fed have undermined the Dollar, which has lost nearly 3.5% in just over a week. Read more…
GBP/USD soars amid Greenback collapse, breaches four-year highs
GBP/USD is well on its way to a second straight week of strong gains as the US Dollar (USD) gives up the ghost on the back of ongoing trade war rhetoric undercutting the Greenback’s strength. The Pound Sterling is on pace to close in the green for a third straight month against the US Dollar, as the pace of Cable gains continues to pick up the pace and hit multi-year highs.
The Federal Reserve (Fed) is set to announce its first rate decision of the year on Wednesday, with no change expected. Investor focus will be on forward guidance, particularly signals around the timing of potential rate cuts. Futures markets currently price in two quarter-point cuts by the end of 2026. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-retreats-to-13780-area-with-markets-bracing-202601281123
