Pound Sterling remains on the back foot against firmer USD amid Mideast crisis
The GBP/USD pair trades with a negative bias for the third straight day on Tuesday, though it lacks follow-through selling and holds above the 1.3500 psychological mark during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution before positioning for an extension of the recent pullback from the 1.3655-1.3660 area, the highest level since February 16, touched last Friday.
The US Dollar (USD) attracts safe-haven flows amid the US-Iran standoff over the Strait of Hormuz and diminishing odds for a rate cut by the US Federal Reserve (Fed) in 2026. A firmer USD, in turn, is seen as a key factor exerting some pressure on the GBP/USD pair. However, the Bank of England’s (BoE) relatively more hawkish stance acts as a tailwind for the British Pound (GBP) and helps limit the downside for spot prices. Read more…
GBP/USD pulls back as risk-off mood drives Monday decline
GBP/USD declined around 0.35% on Monday, settling near 1.3530 after a sharp rejection from the 1.3600 handle dragged the pair lower through choppy afternoon trade. Price had peaked above 1.3650 during Friday’s NY session, but Monday’s broad-based drift carved a session low close to 1.3510 as last week’s bullish momentum waned.
On the Pound side, last week’s Bank of England (BoE) decision saw the Monetary Policy Committee (MPC) vote 8-1 to hold the Bank Rate at 3.75%, with Chief Economist Huw Pill the lone dissenter in favour of a 25 basis point hike. Four other MPC members signalled openness to hikes at upcoming meetings if energy shocks intensify, keeping crude oil dynamics central to the policy outlook. The UK economic calendar is notably bare this week, leaving Cable exposed to broader risk sentiment and US Dollar flows in the absence of domestic catalysts. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-attracts-some-sellers-for-the-third-straight-day-202605050539
