With the stable Middle East truce reducing geopolitical risk premium, the Dollar gained ground amid shifting risk sentiment. DXY held steady at $99.58, EUR/USD defended blue trendline support, and GBP/USD maintained bullish structure above $1.338.
The Bank of England is due to hold its next policy meeting on 18 June. According to a Reuters poll conducted between 5 and 12 June, all 65 economists surveyed expect the Bank Rate to remain unchanged at 3.75%, although around 40% of respondents anticipate at least one rate increase before the end of the year.
Pound Sterling Price News and Forecast: GBP/USD holds steady as the US Dollar stabilizes
The Pound to Canadian Dollar (GBP/CAD) exchange rate opened the week on a stronger footing after the US and Iran agreed a framework to end their nearly four-month conflict, triggering a sharp decline in oil prices and weighing on the commodity-linked Canadian Dollar. At the time of writing, GBP/CAD was trading around CA$1.8767, marginally.
A sharp rebound has eased downside pressure, but the bigger battle for trend control still lies ahead.
Our previous outlook for GBPUSD still stands, as the pair has held above the 1.3280 support level. GBPUSD managed to hold above 1.3280 and has rebounded toward 1.3500 so far.
Pound Sterling Price News and Forecast: GBP/USD jumps to near 1.3460
GBP/USD Price Forecast: US-Iran reaches deal supports advance beyond 20-day EMA
British Pound: Steady against US Dollar before key BoE and data – Scotiabank
British Pound: Poised to fall toward 1.3100 against US Dollar – BBH
U.S. dollar continuing to be a bit stubborn on Friday, as we are looking at the markets through the prism of “what's next?” Headlines will continue to be an issue.
The British pound is testing the critical 1.33 support zone, while silver continues to challenge the 65 level after markets experienced a brief risk-on reaction following news of a completed peace deal. However, uncertainty persists, and the key technical scenarios remain unchanged.