Created
: 2025.05.30
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
GBP/USD recovers 1.35 ahead of key US inflation data
Breaking news
GBP/USD recovers 1.35 ahead of key US inflation data
2025.05.30 08:14
2025.05.30 08:14
- GBP/USD rallied to reclaim the 1.3500 handle as US PCE inflation data looms.
- Tariff turmoil is set to continue weighing on market sentiment after Thursday's appeals circus.
- US PCE inflation data set to release on Friday, investors growing nervous of tariff impacts.
GBP/USD made a choppy relief rally on Thursday, jumping back into the 1.3500 handle as markets gear up for the latest batch of United States (US) Personal Consumption Expenditure Price Index (PCE) inflation figures due on Friday.
US President Donald Trump's "Worldwide Retaliatory Tariff Orders" faced its first significant legal challenge after being ruled against by US trade court judges. The tariffs have been allowed to stand for the time being as the Trump administration appeals the decision. However, investors have a long, grinding road ahead as they continue to await some semblance of policy clarity from the Trump administration.
Read more: Trump tariffs reinstated during appeals process
US PCE inflation from April is slated for Friday, and stands as the week's final key data release. Median market forecasts expect annualized figures to continue declining, but the front end of the curve is expected to begin rising as immediate price impacts of Trump tariffs begin to break through into headline datasets. April's PCE inflation index is expected to ease to 2.5% YoY from 2.6%, while the MoM figure is forecast to rise back to 0.1% from March's flat print of 0.0%. The brunt of tariff impacts will take some time to become fully realized in inflation metrics, and the majority of imposed import taxes didn't come into effect until the tail end of the PCE reference period.
GBP/USD price forecast
GBP/USD snapped a two-day losing streak to retest the 1.3500 region on Thursday. Cable remains buoyed near multi-year highs following a stellar 12.3% run bottom-to-top from January's lows near 1.2100.
A technical pullback runs the risk of clipping a rising trendline near 1.3400, and the odds remain tilted in favor of bidders. GBP/USD continues to trade well north of the 50-day Exponential Moving Average (EMA) near 1.3220.
GBP/USD daily chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.05.30
Related articles
USD/INR firms near 86.00 as US Dollar stabilizes
2025.06.25 21:23EUR/GBP flattens above 0.8500 while BoE's Bailey warns of UK labor market risks
2025.06.25 20:35JPY soft as hawkish BoJ comms highlight importance of trade talks - Scotiabank
2025.06.25 20:33GBP trading in a tight range around 1.36 - Scotiabank
2025.06.25 20:29EUR consolidates around 1.16 - Scotiabank
2025.06.25 20:27CAD little changed on the day - Scotiabank
2025.06.25 20:25
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Silver Price Forecast: XAG/USD tests rising channel support, momentum indicators flash caution
Silver (XAG/USD) is showing muted price action on Wednesday, slipping modestly lower but staying within Tuesday's range. At the time of writing, the metal is trading around $35.75 during the American session, down roughly 0.46% on the day.
New
2025.06.25 22:04USD/INR firms near 86.00 as US Dollar stabilizes
The Indian Rupee (INR) weakens against the US Dollar (USD) during European trading hours on Wednesday, surrendering early gains as the Greenback steadies.
New
2025.06.25 21:23Gold holds steady as risk sentiment improves, Fed's Powell back in focus
Gold (XAU/USD) is trading within a tight range on Wednesday, as markets continue to show signs of optimism following Tuesday's ceasefire between Israel and Iran.
New
2025.06.25 21:03EUR/GBP flattens above 0.8500 while BoE's Bailey warns of UK labor market risks
The EUR/GBP pair trades flat around 0.8525 during European trading hours on Wednesday. The cross flattens as market experts reassess their expectations for the Bank of England's (BoE) monetary outlook for the remainder of the year amid growing concerns over United Kingdom's (UK) job market.
New
2025.06.25 20:35JPY soft as hawkish BoJ comms highlight importance of trade talks - Scotiabank
The Japanese Yen (JPY) is weak, down 0.5% against the US Dollar (USD) and underperforming all of the G10 currencies in relatively quiet trade overall, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.06.25 20:33WTI Oil remains depressed below $65.00 on easing supply concerns
Crude Oil is consolidating losses on Wednesday, after having depreciated more than $10 from Monday's highs.
New
2025.06.25 20:31GBP trading in a tight range around 1.36 - Scotiabank
Pound Sterling (GBP) is entering Wednesday's NA session unchanged vs. the US Dollar (USD), consolidating in a tight range around 1.36 and trading just below Tuesday's multiyear high that reached levels last seen in January 2022, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report
New
2025.06.25 20:29EUR consolidates around 1.16 - Scotiabank
The Euro (EUR) is quietly consolidating in a tight range around 1.16, trading just below Tuesday's fresh multi-year high that reached levels last seen in September 2021.
New
2025.06.25 20:27CAD little changed on the day - Scotiabank
The Canadian Dollar (CAD) is little changed on the session. In line with expectations CPI data, reflecting a marginal easing in core pressures, does no move the needle for the BoC policy outlook in the short run, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.06.25 20:25USD consolidates as geo-political risks recede - Scotiabank
The US Dollar (USD) is a little firmer overall on the day so far but its broader performance only reflects a consolidation in this week's sharp losses.
New
2025.06.25 20:23Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
