Pound Sterling remains flat as traders adopt caution ahead of Fed decision
The post Pound Sterling remains flat as traders adopt caution ahead of Fed decision appeared on BitcoinEthereumNews.com.
GBP/USD steadies after posting gains over the previous two sessions, hovering around 1.1350 during Asian trading hours on Wednesday. The pair shows limited movement as the US Dollar (USD) holds steady, with investors remaining cautious ahead of the Federal Reserve’s (Fed) policy decision scheduled for later in the day. Traders focus on guidance from Fed Chair Jerome Powell regarding how the recent surge in oil prices may influence the central bank’s policy outlook. Markets widely anticipate that the Federal Reserve will keep its benchmark interest rate unchanged within the 3.50%–3.75% range for March, according to the CME FedWatch Tool. If the Fed opts to hold rates steady, it would mark the second consecutive pause, reflecting a cautious stance amid increasing economic and geopolitical uncertainty. Traders expect the Bank of England (BoE) to keep interest rates unchanged at 3.75% on Thursday. Rising oil prices amid the ongoing Iran conflict have lifted inflation expectations in the United Kingdom and sharply reduced the likelihood of a March rate cut. Prior to the conflict, markets had priced in an 80% chance of a March cut; the vote split will be closely watched, with a 6–3 outcome signaling a more dovish tilt than the expected 7–2 consensus. Market participants are also monitoring energy prices, which have found renewed support following recent US military strikes on Iranian coastal sites near the Strait of Hormuz, citing threats from anti-ship missiles to global shipping, according to Reuters. Meanwhile, the BBC reported that Israel claimed responsibility for strikes that killed senior Iranian officials, including Ali Larijani and Basij chief Gholamreza Soleimani. Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world,…
Filed under: News - @ March 18, 2026 3:29 am