Pound Sterling gains momentum above 1.3250 as traders brace for Fed, BoE rate decisions
The GBP/USD pair gains momentum around 1.3255 during the early European session on Monday, bolstered by a weaker US Dollar (USD). The major pair currently trades near its lowest since December 2025. Traders might turn cautious ahead of the US Federal Reserve (Fed) and the Bank of England (BoE) interest rate decisions later this week.
The Fed is widely expected to hold the benchmark federal funds rate steady at its current range of 3.50%–3.75% during its upcoming March meeting on Wednesday. Due to persistent inflation risks, many analysts have pushed back expectations for the next rate cut to September. Read more…
GBP/USD Weekly Forecast: Pound struggles near three-month lows ahead of Fed, BoE
The Pound Sterling (GBP) remained vulnerable while in a bearish consolidation phase against the US Dollar (USD) below the 1.3500 threshold. The USD clinched a second consecutive weekly gain against its major currency rivals, as it continued to benefit from the safe-haven flows infused by the escalating war in the Middle East.
Flight to safety remained the global theme as Iranian attacks intensified on the Gulf countries with the American bases. The United States (US) and Israel continued to bomb Tehran and Beirut, respectively, as the war deepened each passing day. With no end in sight, Iran dug in deep, striking tankers and vessels in the Gulf waters and the Strait of Hormuz, the vital waterway for the passage of about 20% of global oil supplies. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-strengthens-to-near-13255-early-asian-session-202603160528
