The Pound Sterling (GBP) trades higher against its major currency peers, except antipodeans, on Tuesday. The British currency gains as the market sentiment turns favorable for risk-perceived assets, with market jitters due to the capture of Venezuelan President Nicolas Maduro by the United States (US) military over drug-trafficking charges easing.
S&P 500 futures extend Monday’s gains during the European trading session, demonstrating the higher risk appetite of investors.
On Monday, investors turned risk-averse after the US military action in Venezuela and the announcement from US President Donald Trump that Washington will restructure Venezuela’s Oil industry.
On the domestic front, the United Kingdom (UK) economic calendar is light this week, therefore, market expectations for the Bank of England’s (BoE) monetary policy outlook are expected to drive the Pound Sterling.
The BoE is expected to follow a gradual monetary easing path in 2026 as the UK inflation is still above the 2% target, despite price pressures slowing down in the past two months. The UK headline Consumer Price Index (CPI) inflation came down to 3.2% year-on-year (YoY) in November from a peak of 3.8% seen in September.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | 0.05% | 0.03% | 0.04% | -0.05% | -0.07% | 0.14% | |
| EUR | -0.09% | -0.04% | -0.05% | -0.05% | -0.13% | -0.16% | 0.05% | |
| GBP | -0.05% | 0.04% | 0.00% | -0.01% | -0.08% | -0.11% | 0.09% | |
| JPY | -0.03% | 0.05% | 0.00% | 0.01% | -0.07% | -0.10% | 0.12% | |
| CAD | -0.04% | 0.05% | 0.00% | -0.01% | -0.09% | -0.11% | 0.10% | |
| AUD | 0.05% | 0.13% | 0.08% | 0.07% | 0.09% | -0.02% | 0.20% | |
| NZD | 0.07% | 0.16% | 0.11% | 0.10% | 0.11% | 0.02% | 0.20% | |
| CHF | -0.14% | -0.05% | -0.09% | -0.12% | -0.10% | -0.20% | -0.20% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Daily digest market movers: Investors await US NFP data for December
- The Pound Sterling jumps to near 1.3555 against the US Dollar (USD) during the European trading session on Tuesday, the highest level seen in nearly four months. The GBP/USD pair strengthens as the US Dollar corrects further, with optimism returning to global markets.
- As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.16% lower to near 98.20. On Monday, the DXY reversed after posting a fresh over-three-week-high at 98.86.
- Apart from improving market sentiment, comments from Minneapolis Federal Reserve (Fed) President Neel Kashkari signaling concerns on the labour market outlook and weak US ISM Manufacturing PMI data for December have also weighed on the US Dollar.
- On Monday, Fed Kashkari warned that the “job market is clearly cooling”. Kashkari also signaled that there is more room for interest rate cuts, citing that “My [Kashkari] guess is we’re [Fed] close to neutral now”.
- The data released on Monday showed that the ISM Manufacturing PMI dropped to 47.9 in December from 48.2 in the previous month. This is the 10th straight month with the manufacturing business activity contracting.
- Going forward, investors will focus on the US Nonfarm Payrolls (NFP) data due for release on Friday. The US official employment data will significantly influence market expectations for the Fed’s monetary policy outlook as the central bank reduced interest rates by 75 basis points (bps) to the 3.50%-3.75% range in 2025 due to downside labor market risks.
Technical Analysis: GBP/USD aims to stabilize above 61.8% Fibo retracement at 1.3500
GBP/USD trades at 1.3550 at the time of writing. The 20-day Exponential Moving Average (EMA) is rising beneath price, keeping the short-term bias pointed higher. A sustained close above this gauge favors follow-through on the advance.
The Relative Strength Index (RSI) at 68.79 sits near overbought, confirming firm bullish momentum. Measured from the 1.3799 high to the 1.3008 low, the 61.8% Fibonacci retracement at 1.3497 has been reclaimed.
The trend tone remains positive while the pair holds over the ascending 20-EMA, with the indicator last at 1.3444 acting as dynamic support on dips. Meanwhile, the RSI stays elevated and rising, leaving scope for an extension before momentum cools. On the topside, measured from the 1.3799 high to the 1.3008 low, the 78.6% retracement at 1.3630 stands as the next resistance. A break above this barrier would open the path for further recovery.
(The technical analysis of this story was written with the help of an AI tool.)
