GBP/USD consolidates around 1.3300 mark; downside potential seems limited

Mitrade
coverImg
Source: DepositPhotos
  • GBP/USD lacks any firm intraday direction and oscillates in a range at the start of a new week.

  • The USD preserves last week’s recovery gains from a multi-year low and acts as a headwind.

  • Bets for a less dovish BoE and hopes for a UK-US trade deal to limit the downside for the major.


The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band around the 1.3300 round-figure mark during the Asian session.


The US Dollar (USD) preserves last week's recovery gains from a multi-year low amid the uncertainty over US-China trade talks, which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. US Treasury Secretary Scott Bessent said on Sunday that he did not know if US President Donald Trump had talked to Chinese President Xi Jinping. This keeps a lid on the optimism led by Trump's assertion that tariff talks with China were underway and underpins the USD's relative safe-haven status.


The British Pound (GBP), on the other hand, draws some support from the upbeat domestic data released on Friday and hopes that the UK will strike a trade deal with the US soon. In fact, UK Retail Sales unexpectedly rose by 0.4% in March following the previous month's downwardly revised growth of 0.7%. For the first quarter as a whole, retail sales rose by 1.6% - marking the strongest reading in four years and tempering market expectations for a more dovish Bank of England (BoE) rate-cut path going forward.


In contrast, traders have been pricing in the possibility that the Federal Reserve (Fed) will resume its rate-cutting cycle in June and lower borrowing costs at least three times by the end of this year. This, along with concerns about the economic fallout from Trump's trade policies, is holding back the USD bulls from placing fresh bets and lending some support to the GBP/USD pair. Hence, it will be prudent to wait for strong follow-through selling before positioning for any meaningful downside for spot prices.


Read more

  • Gold Price Forecast: US August PCE Imminent, Will Gold Prices Rise or Fall Short-Term?
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    【Daily Brief】The dollar ground higher for six days — and the AUD fell 2% in the very week the RBA hiked to a 15-year highThe dollar index held above 101 while the Australian dollar slid to a two-month low of 0.6976, a 2.02% six-session loss, even though the RBA raised rates to 4.60% and Australian CPI printed 4.0%. The yen is the only major currency gaining, ahead of Japan's monthly intervention tally at 7pm JST.
    Author  Irene Q.
    Sep 30, Wed
    The dollar index held above 101 while the Australian dollar slid to a two-month low of 0.6976, a 2.02% six-session loss, even though the RBA raised rates to 4.60% and Australian CPI printed 4.0%. The yen is the only major currency gaining, ahead of Japan's monthly intervention tally at 7pm JST.
    placeholder
    RBA set to hike interest rate to 4.60% in September as inflation remains elevatedThe Reserve Bank of Australia (RBA) is widely expected to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.60% from 4.35% on Tuesday, after keeping rates unchanged at its previous two meetings
    Author  FXStreet
    Sep 29, Tue
    The Reserve Bank of Australia (RBA) is widely expected to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.60% from 4.35% on Tuesday, after keeping rates unchanged at its previous two meetings
    placeholder
    Yen touches 158.37 as Tokyo reopens, then slips back — ¥15.4 trillion of intervention and the 200-day line stand between here and 160USD/JPY reached 158.37 overnight, its highest since early September, then eased to 157.88 as Japanese markets reopened after a three-day holiday. The Ministry of Finance has spent ¥15.4 trillion defending the yen since late July and the BOJ ran a rate check on September 18. The 200-day average sits at 158.43.
    Author  Irene Q.
    Sep 24, Thu
    USD/JPY reached 158.37 overnight, its highest since early September, then eased to 157.88 as Japanese markets reopened after a three-day holiday. The Ministry of Finance has spent ¥15.4 trillion defending the yen since late July and the BOJ ran a rate check on September 18. The 200-day average sits at 158.43.
    placeholder
    Euro weakens below 1.1400 as Fed rate hike expectations reinforce US Dollar strengthThe EUR/USD pair loses ground to near 1.1380 during the early Asian trading hours on Thursday. The major pair extends its downside as hawkish signals from the US Federal Reserve (Fed) boost the US Dollar (USD) against the Euro (EUR).
    Author  FXStreet
    Sep 24, Thu
    The EUR/USD pair loses ground to near 1.1380 during the early Asian trading hours on Thursday. The major pair extends its downside as hawkish signals from the US Federal Reserve (Fed) boost the US Dollar (USD) against the Euro (EUR).
    placeholder
    Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonightThe dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
    Author  Suzie
    Sep 22, Tue
    The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
    Live Quotes
    Name / SymbolChart% Change / Price
    GBPUSD
    GBPUSD
    0.00%0.00

    Forex Related Articles

    • How to Identify Forex Scams? Warning Signs Every Trader Should Know
    • Stop Loss: Your Savior In The Market
    • Is Mitrade a Legit Broker? A Transparent Review of Security, Platform, and Trading Conditions (2026 Updated)
    • Is Mitrade Right for You? A Complete Guide on How to Start Trading CFDs in 5 Steps
    • 6 Leading ASIC-Regulated Forex Trading Platforms&Apps in Australia (2026 Update)
    • Forex Trading In Malaysia - Top 10 Forex Brokers for Malaysia: Regulated & Trader-Friendly Picks

    Click to view more