The British Pound increased on Wednesday as the US Dollar weakened. This decline was due to concerns about the Federal Reserve’s independence and comments from Japanese officials impacting the Yen. The GBP/USD exchange rate rose to 1.3461, an increase of 0.30%. In anticipation of the UK’s GDP and factory data set to be released, the British Pound strengthened against most major currencies, except the antipodeans. During Asian trading hours, GBP/USD faced pressure, trading lower around 1.3425, ahead of important US Retail Sales and Producer Price Index data.

Eur to Usd Performance

EUR/USD continued to fall, reaching the 1.1640 level due to losses in the US Dollar. By the end of the day, GBP/USD faced selling pressure, dropping towards 1.3420, as expectations grew for the UK’s upcoming data releases. Gold prices climbed above $4,650 per ounce as the weakened US Dollar and falling Treasury yields drove this increase. Litecoin saw a spike in whale transactions and interest in derivatives, despite a stagnant price. Meanwhile, Hyperliquid rose above $26.00 due to improved on-chain metrics. The US economic outlook is under pressure with Jerome Powell’s term ending in 2026, facing challenges in central banking and policy debates. No specific investment advice is provided, and potential market risks remain. The key takeaway is the ongoing weakness in the US Dollar, driven by political pressure on the Federal Reserve. We should consider preparing for further dollar decline, as markets are anticipating several rate cuts for 2026, marking a significant shift from the hawkish stance seen throughout much of 2025. Looking into options on dollar index futures (DXY) could be a way to profit from this sentiment with defined risks.

Sterling Versus Us Dollar Outlook

Sterling shows strength against the dollar, but the upcoming UK GDP figures represent a significant event. We recall the mild technical recession the UK faced in the second half of 2025, making a negative surprise possible. A cautious strategy, such as buying GBP/USD call options, would allow participation in a continued rally while limiting potential losses if the data disappoints. The rise in precious metals directly results from the weaker dollar and declining Treasury yields. With gold surpassing $4,600 and silver aiming for $100, the momentum is clearly upward. This trend follows a strong bull market that began when gold decisively broke above $2,100 in late 2024, and traders should look for opportunities to join this trend. Upcoming US data, especially Retail Sales and PPI, is likely to create volatility. If the figures exceed expectations, we could see a short-term dollar rally. This would provide a better entry point for shorting the currency or increasing long positions in gold and silver. Recently, inflation data showed core CPI stubbornly above 3%, complicating the Fed’s path and ensuring close scrutiny of any data release. Given the Euro’s struggle to rally amid dollar weakness, we should consider currency pairs that exclude the dollar. The pound is testing levels unfamiliar since the post-pandemic recovery in 2024. Therefore, taking a long position in GBP/EUR could be a more effective strategy to express a bullish outlook on Sterling while isolating it from a currency facing its own clear challenges. Create your live VT Markets account and start trading now.

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