– Written by


Frank Davies

STORY LINK GBP/USD Forecast: Pound Sterling Edges Higher as USD Headwinds Mount

The Pound to US Dollar exchange rate (GBP/USD) hovered near a four-month peak on Tuesday, supported by ongoing weakness in the US Dollar, although a lack of fresh data kept volatility contained.

At the time of writing, GBP/USD was trading at $1.3701, moving sideways just shy of the previous session’s four-month high.

The US Dollar (USD) remained under pressure, extending recent losses after a heavy selloff earlier in the week dragged the currency to multi-month lows.

Sentiment towards the Greenback has deteriorated amid growing unease over both foreign policy and domestic political strains. While President Donald Trump stepped back from threatening new tariffs on Europe, markets were unsettled by fresh warnings aimed at Canada, with Trump suggesting 100% tariffs could be imposed if Ottawa pursues a trade agreement with China.

At home, the mood darkened further following public outrage over the second fatal shooting of a US citizen by immigration agents in Minneapolis. The incident reignited fears of political gridlock, with some Democrats withdrawing support for funding the Department of Homeland Security, raising the prospect of another government shutdown.

With tensions simmering on multiple fronts, investors have grown increasingly cautious about holding US Dollar exposure. Although USD briefly stabilised after Trump attempted to cool the situation in Minneapolis, the currency struggled to attract sustained buying interest.

The Pound (GBP), meanwhile, found it difficult to extend gains, with a quiet UK data calendar leaving Sterling short of clear direction.

Political developments also weighed on sentiment. Reports of renewed friction within the governing Labour Party surfaced after allies of Prime Minister Keir Starmer moved to block Andy Burnham from standing in a forthcoming by-election. The move fuelled speculation it was designed to head off a potential leadership challenge, adding another layer of uncertainty that appeared to cap demand for the Pound.

GBP/USD Forecast: Fed Leadership Decision Looms

Looking ahead, markets are bracing for an announcement from President Donald Trump on his preferred candidate to succeed Jerome Powell as Chair of the Federal Reserve, with the nomination expected before the end of the month.

Given Trump’s repeated criticism of Powell’s policy stance, investors anticipate a more dovish nominee when Powell’s term expires in May. Such an outcome could undermine confidence in the US Dollar and place USD under renewed pressure.

With little in the way of UK economic data scheduled, movement in the Pound is likely to remain closely tied to shifts in global risk appetite and developments surrounding US monetary policy.

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TAGS: Pound Dollar Forecasts

– Written by


David Woodsmith

STORY LINK Pound to Dollar Forecast 2026: Gold and Yen Surge Expose USD Vulnerability

The Pound to Dollar exchange rate (GBP/USD) surged to fresh four-month highs above 1.3680 as the dollar slid sharply on yen intervention fears and another surge in gold prices, pushing the DXY index into a technically fragile zone.

GBP/USD Forecasts: Fresh 4-Month Best

The dollar posted sharp losses in New York trading on Friday and has lost further ground on Monday.

The Pound to Dollar (GBP/USD) exchange rate surged to a 4-month high just above 1.3680 before a slight correction

UoB commented; “We continue to expect a stronger GBP today, but given the deeply overbought conditions, any advance is likely part of a higher range of 1.3590/1.3700. In other words, GBP is unlikely to break clearly above 1.3700.

The bank notes that levels above 1.3700 are the September 2025 high of 1.3730 and the July 2025 peak at 1.3790.

There are no major UK data releases this week with global developments set to dominate GBP/USD moves.

The dollar slide was triggered to an important extent by a slump against the yen amid fears that central bank intervention to buy the yen was imminent. Overall dollar sentiment also remained negative while there was another surge in precious metals with silver and gold both jumping to fresh record highs.

MUFG commented; “The broad US dollar index (DXY) remains under downward pressure, having slipped below the 98.00 handle. The index now sits at a technically pivotal zone – any further deterioration risks opening the door to an extended phase of USD softness.”

Overnight, the Bank of Japan and Federal Reserve looked to check dollar positions against the yen. This is the final move before a potential move to actually intervene and buy the yen.

ING commented; “Suspected intervention to sell USD/JPY, plus US authorities reportedly getting involved, has prompted a near 3.5% drop since Friday morning. This is not a fundamentally driven dollar move, but the dollar risk premium can stay elevated.”

ING is not convinced that the dollar slide will continue; “away from the geopolitical risk premium being attached to US assets, the dollar’s fundamental story has not deteriorated. Plus, we suspect this week’s FOMC meeting could prove slightly dollar bullish.

It added; “for the dollar sell-off to continue like this, we will probably need to see some poor domestic US news. Away from the FOMC, this will heighten scrutiny on earnings releases from US Big Tech this Wednesday and Thursday.

The Fed will announce its interest rate decision on Wednesday with strong expectations that rates will be held at 3.75%.

Danske Bank commented; “We expect the Federal Reserve to maintain its monetary policy unchanged, in line with broad consensus and market pricing. The Fed will not publish updated projections, so the focus is strictly on Powell’s remarks.”

From a longer-term view it added; “We maintain our forecast for two more Fed cuts, in March and June, slightly ahead of market pricing.”

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USD/JPY Inches Higher as Yen Strengthening Lacks Follow-Through, Fed 2-Day Meeting Begins

is edging higher on Tuesday with the yen weakening amid concerns about Japan’s fiscal health on the back of Prime Minister Takaichi’s plans for aggressive spending and tax cuts. Furthermore, the market mood is more positive, which is also undermining safe-haven demand for the JPY.

Yesterday’s strengthening of the yen is lacking follow-through for now. However, the downside in the yen could be limited given the willingness of US and Japanese authorities to step in and support the currency and the BoJ’s hawkish stance.

The sharp move in USD/JPY in recent sessions highlights market nervousness over a possible intervention.

PM Takaichi has called a snap election for February 8, aiming to capitalise on her popularity to strengthen her mandate and push ahead with fiscal expansionary policies. Japanese bond yields have soared in recent weeks amid nervousness over Japan’s fiscal outlook. That same nervousness had weighed on the yen.

data is due late in the week. The BoJ lifted its growth and inflation forecasts in last week’s meeting, keeping more rate hikes on the table.

This is in contrast to the Federal Reserve, which kicks off its two-day meeting today. The Fed is expected to leave rates unchanged at 3.5% to 3.75% after three consecutive last year. Attention will be on Fed Chair Powell’s press conference for further clues on the timing of further rate cuts.

The has steadied around a 4-month low, weighed down in recent sessions by the “sell America” trade, by Trump’s threats of 100% tariffs on Canada and higher tariffs on South Korea, by fears of another US government shutdown, and by speculation of JPY intervention.

USD/JPY Forecast – Technical Analysis

USD/JPY broke aggressively below its rising trendline dating back to mid-September, and the 50 SMA, falling to a low of 153, before settling above the 154.25 support.

USD/JPY bulls are extending the recovery today towards 155.00. A rise above the 155 puts the pair on a more stable footing and brings 156.00 back into focus ahead of 157.50 as the next key resistance area to watch; this had acted as a support before the sharp selloff.

On the downside, there isn’t that much in the way of support. Should sellers take out the 153.30 low, this exposes the longer-term trendline support around 152.00. A break below here exposes the 200 SMA at 149.75.

DAX Rises as EU-India Trade Deal Is Agreed

, along with European shares, is seen opening broadly higher on Tuesday, with trade tensions, the upcoming Fed rate decision, and mega cap tech earnings all in focus.

The EU and India have concluded a free trade agreement after almost 20 years of negotiations, and space science seeks to deepen economic ties and offset the impact of Trump’s tariff policies.

The deal is expected to double EU goods exports to India by 2032, eliminating or reducing tariffs on almost 97% of those exports. This includes a range of products from automobiles and industrial goods to wine and chocolate. India has agreed to allow up to 250,000 European-made vehicles into the country at preferential duty rates.

Meanwhile, the EU will eliminate or reduce tariffs on almost 100% of goods imported from India over the coming seven years. The deal is set to give India a competitive edge in exporting labour-intensive goods, which have been hit hard by Trump’s steep tariffs.

Looking ahead, today also sees the start of the FOMC meeting ahead of tomorrow’s rate decision, where investors will be looking for clues on the timing of the Fed’s next rate cut. President Trump is expected to nominate a new Federal Reserve chair within the coming days.

In the US, 100 companies are due to release their quarterly earnings results this week. Among these firms, , , and will unveil their latest results.

DAX Forecast – Technical Analysis

 After running into resistance at 25,500, the record high, the DAX fell lower, breaking below its near-term rising trendline dating back to mid-November before finding support at 24,350 and settling above the 24,600 support. From here, the price has extended its recovery, and while remaining below the rising trendline, it is tracking the line higher. The long-term uptrend also remains intact.

Buyers, supported by momentum, will look to extend the recovery above 25,500 to fresh record highs.

Immediate support is seen at 24,600, the July and October highs. A close below here opens the door to the 50 SMA at. 24,330.

Original Post

Copper price reached $5.9700 level yesterday to settle below it, affected by the continuation of the contradiction between the main indicators, especially by stochastic exit from the overbought level, which forces it to fluctuate in sideways range by its stability near $5.8300.

We expect the price to be affected by a state of instability due to the ongoing divergence of the main indicators, despite the presence of an opportunity to edge toward $5,720.00. However, exposure to negative pressure may force it to retest the solid support near $5,510.00, while surpassing this level and holding above it will reinforce the chances of recording new gains that might extend towards $6.1200 and $6.2400.

The expected trading range for today is between $5.7500 and $6.000

Trend forecast: Fluctuating

Copper price reached $5.9700 level yesterday to settle below it, affected by the continuation of the contradiction between the main indicators, especially by stochastic exit from the overbought level, which forces it to fluctuate in sideways range by its stability near $5.8300.

We expect the price to be affected by a state of instability due to the ongoing divergence of the main indicators, despite the presence of an opportunity to edge toward $5,720.00. However, exposure to negative pressure may force it to retest the solid support near $5,510.00, while surpassing this level and holding above it will reinforce the chances of recording new gains that might extend towards $6.1200 and $6.2400.

The expected trading range for today is between $5.7500 and $6.000

Trend forecast: Fluctuating

Created on January 26, 2026

The Euro has been extraordinarily negative against the British pound on Friday, as the economic figures in the United Kingdom continue to impress, suggesting a hesitant Bank of England.

EUR/GBP

The Euro has been extraordinarily negative against the British pound during the trading session on Friday, knocking back some of the previous Euro strength as the retail sales in the United Kingdom came out much hotter than anticipated, along with the manufacturing PMI forward-looking numbers. So, it does look like inflation is going to stick around a bit in the United Kingdom, and that keeps the Bank of England perhaps thinking about keeping rates higher for longer.

It is a very similar situation to what we see at the Federal Reserve at the moment, although the Federal Reserve has become a little bit more cautious as of late. But for three years now, I have been hearing about the Fed getting ready to cut drastically, and it is yet to happen. Maybe the United Kingdom is in the same position. The European Central Bank, of course, is where it needs to be, and it is going to stay flat. So, I think that is part of what is driving this.

Major Resistance Barrier

But when you look at the longer-term chart, we had just pulled back from a major resistance barrier going back multiple years. So now, the next thing I am watching is the 200-day EMA, currently sitting at the 0.8652 level. If we break down below there, then 0.86 is your next target, followed by 0.8450.

I do think it eventually does break down. It makes a lot of sense to me. That doesn’t mean that it is easy, and it doesn’t mean that it happens quickly. But quite frankly, I don’t see why it won’t. The central bank divergence and economic numbers alone should make that a real thing.

Ready to trade our daily forecast and analysis? Here’s a list of some of the top forex brokers UK to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

– Written by


David Woodsmith

STORY LINK GBP/USD Forecast: Pound Sterling Near Six-Month Best Exchange Rate

The Pound to US Dollar exchange rate (GBP/USD) opened the new week on strong footing, pushing to a fresh six-month high as broad-based selling pressure continued to undermine the US Dollar.

At the time of writing, GBP/USD was trading close to $1.3671, representing a gain of around 0.3% compared with Monday’s opening levels.

The US Dollar (USD) remained on the back foot at the start of the week, extending a sell-off that dragged the currency to multi-month lows in the previous session.

Fresh pressure on the Greenback followed renewed tariff threats from US President Donald Trump, who warned of imposing 100% tariffs on Canada should it strike a trade agreement with China. Trump argued such a deal would effectively turn Canada into a gateway for Chinese goods entering the US market.

These remarks have heightened investor unease around US trade and foreign policy, with markets increasingly unsettled by the unpredictability of the Trump administration.

Adding to the negative tone for the Dollar were renewed concerns over a potential US government shutdown, after Senate Democrats pledged to block funding for the Department of Homeland Security following the death of another US citizen at the hands of federal agents over the weekend.

Despite its strength against the US Dollar, the Pound (GBP) struggled to generate notable gains against other major currencies.

Sterling traded in a relatively narrow range amid a quiet UK economic calendar, following a week packed with high-profile data releases.

Investor caution was also fuelled by lingering domestic political uncertainty, with speculation over internal Labour Party tensions weighing on broader confidence in the UK outlook.

GBP/USD Forecast: Fed Leadership in Focus

Looking ahead, attention is likely to centre on the anticipated announcement of Donald Trump’s nominee to succeed Jerome Powell as Chair of the Federal Reserve, a development that could drive significant volatility in GBP/USD.

Should the chosen candidate be viewed as supportive of more aggressive interest rate cuts, the US Dollar may face renewed selling pressure.

Conversely, a nomination perceived as safeguarding Federal Reserve independence could help the Greenback recover some of its recent losses.

In the meantime, with little in the way of major UK data releases scheduled, movement in the Pound is expected to remain closely tied to global risk appetite and broader market dynamics.

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Created on January 26, 2026

• The Euro was grinding just a touch higher despite the fact that it initially fell as the day started. Ultimately, we find ourselves watching the same important level heading into the weekend.

EUR/USD

The Euro was grinding just a touch higher after initially falling on Friday due to the overall US dollar weakness rather than any intrinsic Euro strength. The primary driver at the moment is heightened political risk in the US, specifically the volatility surrounding the recent tariff threats around Greenland.

But this is just a momentary blip on the radar, and the question now is where these currencies deserve to be. On one hand, we have seen the dollar get punished, and money flew into places like gold and, by default, the Euro. That being said, there is immediate resistance just above the 1.18 level and then again at the 1.1850 level, and I think it’s going to be very difficult to break above there as it has shown multiple times in the past.

Lack of Momentum

Because of this, I anticipate that this sets up for a shorting opportunity early in the week next week, as Friday has shown a real lack of momentum or, quite frankly, interest at this point in time. With that being the case, I think the overall range remains from 1.14 on the bottom to 1.1850 on the top.

The 50-day EMA has provided short-term support between those two levels over the last couple of days and currently sits at the 1.1675 level. Ultimately, I think this is a market that doesn’t really have anywhere to be anytime soon, although it’s clear that the bullish behavior is fairly resilient. But the question now is, as we rise towards the major resistance barrier, is there anything to make it break out? As things stand right now, it.

Ready to trade our EUR/USD analysis and predictions? Here are the best European brokers to choose from.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The GBPJPY pair approached from the main target at 215.00 level, forming strong barrier against the attempt of resuming the bullish attack, to force it form strong corrective decline, to resume forming bearish price gap this morning, to settle below the bullish channel’s support at 210.95 level.

The stability below the broken support and providing bearish momentum by the main indicators will confirm the dominance of the bearish bias, to expect suffering extra losses by reaching 209.65 followed by %200 Fibonacci extension level at 208.50.

The expected trading range for today is between 209.65 and 210.80

Trend forecast: Bearish by the stability of 211.00