Pound Sterling Price News and Forecast: GBP/USD extends its decline as risk aversion rises

FXStreet Team FXStreet

GBP/USD falls to near 1.2400 due to risk-off sentiment following Trump tariff threats

GBP/USD continues its losing streak for the fourth successive session, trading around 1.2420 during the Asian hours on Friday. This downside is attributed to the improved US Dollar (USD) amid increased risk aversion following renewed tariff threats from US President Donald Trump.

President Trump reiterated plans late Thursday to impose a flat 25% import tax on all goods entering the US from Canada and Mexico, citing concerns over fentanyl. The first wave of tariffs on both countries is set to take effect on February 1, according to Reuters. Additionally, Trump hinted at the possibility of imposing tariffs on Canadian and Mexican Oil exports. He also reaffirmed his threat on X (formerly Twitter) to levy 100% tariffs on BRICS nations if they attempt to introduce an alternative currency to challenge the US dollar in international trade. Read more...

GBP/USD sheds weight amid thin Thursday ahead of key US data

GBP/USD soured slightly on Thursday, shedding a scant one-fifth of one percent as markets grapple with mixed headwinds and keep risk appetite underbid. US President Donald Trump reiterated threats to impose stiff tariffs on Canada and Mexico as soon as February 1, with fresh threats in the pipe for import fees on Chinese goods and Crude Oil products.

US economic data came in mixed on Thursday, further flummoxing markets. US Gross Domestic Product (GDP) growth in the fourth quarter of 2024 came in below expectations, but weekly Initial Jobless Claims figures beat expectations while remaining well within recent norms. Read more...

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EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.