GBP/USD gained ground, supported by U.S. CPI report. Traders bet that Fed will be less hawkish as inflation has started to calm down. Traders also focus on comments from Fed Chair Warsh. He said that CPI decline did not mean that Fed accomplished its mission.

In case GBP/USD pulls back below the 50 MA at 1.3376, it will head towards the nearest support level at 1.3335 – 1.3350. A successful test of of this level will open the way to the test of the next support at 1.3250 – 1.3265.

On the upside, GBP/USD needs to settle above the resistance at 1.3450 – 1.3465 to have a chance to gain additional upside momentum in the near term.

– Written by


David Woodsmith

STORY LINK GBP/USD Price Forecast: Pound Sterling Surges vs Dollar after US Inflation Miss

The Pound to US Dollar (GBP/USD) exchange rate advanced strongly on Tuesday after softer US inflation figures prompted investors to scale back expectations for further Federal Reserve interest rate hikes.

At the time of writing, GBP/USD was trading around $1.3416, up approximately 0.5% from the opening levels of Tuesday’s session.

The US Dollar (USD) came under broad selling pressure on Tuesday following the publication of the latest US consumer price index, which indicated price pressures eased by more than markets had anticipated in June.

Headline inflation slowed from 4.2% to 3.5% year-on-year, beating expectations for a more modest decline to 3.8%. Core inflation also surprised to the downside, with the annual rate easing to 2.6%.

The weaker inflation print prompted investors to reassess the outlook for US monetary policy, with market pricing for a September Federal Reserve interest rate increase falling from roughly 70% to around 50%.

The Pound (GBP) also attracted buyers on Tuesday as investors continued to anticipate that the Bank of England (BoE) may yet be forced to tighten monetary policy again.

Those expectations have been reinforced by the latest surge in global energy prices. Renewed conflict in the Gulf has resulted in the closure of the Strait of Hormuz, fuelling concerns over higher import costs and the potential for another inflationary shock that could keep pressure on the BoE to raise borrowing costs before the end of 2026.

However, Sterling’s advance was capped by measured remarks from Bank of England Governor Andrew Bailey.

Appearing before the Treasury Select Committee, Bailey warned that escalating tensions in the Middle East present significant risks to financial stability, while also highlighting that weak domestic growth continues to weigh on the UK’s economic outlook.

Near-Term GBP/USD Forecast: US Producer Prices Awaited

Looking to the midweek session, attention will turn to the publication of the latest US producer price index, which is expected to provide the next major catalyst for the Pound to US Dollar (GBP/USD) exchange rate.

If producer price inflation also points to easing price pressures, investors may further unwind expectations for additional Federal Reserve tightening, potentially placing renewed pressure on the US Dollar.

Meanwhile, the Pound may struggle to establish a clear direction on Wednesday as the UK economic calendar remains quiet ahead of Thursday’s closely watched GDP release.

Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John’s new, free, no-obligation personal service! ,where he helps every step of the way,
ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Dollar Forecasts

The British pound rose against the Japanese yen again on Monday, as we continue to see the ‘carry trade’ play out.

GBP/JPY

The British pound has risen during the early part of the trading session on Monday as we are starting to see the Japanese yen soften a bit. That makes a certain amount of sense, considering the interest rate differential between the two currencies and, of course, the fact that the Bank of Japan is essentially stuck while the Bank of England is still offering much higher rates and likely to be a little bit more stubborn.

You can see that we have seen such a nice, strong uptrend since 2020, and nothing has changed here. I think we still have a buy on the dips scenario as we have a longer-term destruction of the Japanese yen ahead of us. I’m playing all the yen-related pairs with small positions. I’m not trying to jump in with both feet because you get paid at the end of every day, and you can take advantage of the overall interest rate differential, gradually padding your account. It’s the simple carry trade.

The Carry Trade Dynamics and Key Yen Levels

The 215 yen level is an area that has been important in the past, so it could offer a bit of support if we are driven down to that area. It’s worth noting that the 50-day EMA is in that same region as well, offering a potential support level for technical traders, also.

To the upside, the next large round psychologically significant figure is the 220 yen level. Overall, this is a market that I think, given enough time, probably has to determine whether or not we are still going to short the yen. And I think looking around the markets, it will be a pretty obvious scenario one way or the other because, quite frankly, the yen-related pairs all tend to move most of the time in the same direction. So, one way traders can take advantage of that is to look around the world and sort out which ones are doing what and whether or not we continue to see that same pattern play out.

Begin trading our daily forecasts and analysis. Here is a list of Forex brokers in Japan to work with.

Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

Platinum price kept providing weak sideways trading by its stability near $1605.00 level, affected by the contradiction of the main indicators, obstructing the attempts of activating the suggested negative trend.

The price needs a new negative momentum, which allow it to reach $1510.00 support, while breaking it will confirm its move to a new negative station, to target $1440.00 level, reaching $1310.00, while holding above this support might provide a chance for recording some gains by target $1690.00 level, reaching the barrier near $1785.00

The expected trading range for today is between $1555.00 and $1680.00

Trend forecast: Fluctuating