GbpUsd is entering two tense weeks that could set the tone for the rest of the year. First up comes U.S. CPI and the ECB rate decision, both of which will shake dollar and euro flows. But the real fireworks are likely to arrive the following week, when both the Bank of England and the Federal Reserve announce their own rate calls. With the pair sitting above its 50-week average, it feels stuck in no man’s land. But history tells us that when the spotlight is on, GbpUsd tends to be the most volatile of the majors. After gaining around 1,000 pips since the start of the year (!?!?), traders are asking the big question — could it stretch another 500 pips higher to test 1.40 in September or October?
EurUsd and UsdCad might be worth a glance, but cable (they still call GbpUsd a cable??) is the one that usually rips when uncertainty peaks. The UK and U.S. struck a tariff deal, only to see American courts strike down Trump’s sweeping tariffs. The markets are still wondering what the next move in trade policy will look like. It’s a cocktail of rate risk, political noise, and technical levels. Whether it’s up or down, the next two weeks promise to be anything but quiet for GbpUsd.
