Pound in Focus Ahead of BoE; Gold, Oil and Silver Slide | 18th September 2025
Pound & BoE Focus
Global markets opened Thursday with a cautious tone as traders brace for the Bank of England’s policy decision, keeping the British Pound in the spotlight. GBP/USD hovers near 1.3600, while EUR/GBP consolidates below 0.8700, reflecting investor hesitation ahead of key central bank guidance. Elsewhere, gold and silver slipped as Fed cut bets waned, and crude oil prices stayed pressured, underscoring broader market uncertainty.
Gold Forecast (XAU/USD)
Current Price and Context
Gold has pulled back from its recent record highs (just above $3,700) as the U.S. Dollar (#USD / TVC:DXY) shows signs of recovery. The Federal Reserve’s dovish rate cut stance and rising geopolitical tensions still lend support to bullion, but USD strength is weighing on upside, limiting further gains ahead of major central bank news.
Key Drivers
Geopolitical Risks: Continued escalation in global flashpoints (Middle East, Russia-Ukraine, etc.) boosts demand for safe-haven assets.
US Economic Data: Signs of softening labor market and inflation maintain expectations for rate cuts, but recent USD rebound reflects some concern about upside risk.
FOMC Outcome: The Fed’s dovish guidance (less aggressive cuts, meeting-by-meeting approach) supports gold broadly but also adds uncertainty around how much easing to expect.
Trade Policy: Tariff concerns and trade friction remain background risk factors that favour the safe-haven appeal of gold.
Monetary Policy: Low yields, expectations of rate cuts, and dovish central bank dialogue help sustain gold’s appeal as a non-yielding store of value.
Technical Outlook
Trend: Near-term pullback / consolidation after a sharp rally. Bullish bias remains intact but upside is capped.
Resistance: ~$3,700-$3,720 (recent high and psychological barrier).
Support: ~$3,645-$3,650; deeper support near ~$3,600 if weakness accelerates.
Forecast: Gold may drift lower in the short run, testing support around $3,650. A stronger pullback would likely be bought. A sustained break above $3,700 opens the possibility of further upside toward $3,750.
Sentiment and Catalysts
Market Sentiment: Cautious-bullish — traders expect gold to hold value in this macro environment, but some profit taking around the highs is natural.
Catalysts: Upcoming Fed policy decision, U.S. CPI & inflation prints, speeches from Fed officials, and any new geopolitical developments.
Silver Forecast (XAU/USD)
Current Price and Context
XAG/USD has slipped below $41.50, signaling a pullback after recent gains. The decline comes as Fed rate-cut expectations are cooling, and the U.S. dollar is gaining a bit of strength, putting pressure on precious metals. Traders seem to be taking profits and awaiting clearer signals from upcoming U.S. data.
Key Drivers
Geopolitical Risks: Ongoing global tensions maintain some safe-haven demand, but not enough to offset USD strength and rate expectations.
US Economic Data: Softer inflation or stronger than expected economic prints could reduce the odds of deep Fed cuts.
FOMC Outcome: The market seems to be shifting toward less aggressive easing, which weighs on silver.
Trade Policy: No major trade surprises at the moment; risk of supply chain cost pressures is moderate.
Monetary Policy: Dovish pressure on Fed may be diminishing; rising real rates or strong inflation could shift dynamics.
Technical Outlook
Trend: Bearish to neutral as silver breaks support.
Resistance: $41.50 → $42.20.
Support: $40.80 → $40.20.
Forecast: Silver may test the $40.80 level below, with further downside if USD strength persists. A close back above $41.50 would be needed to restore bullish potential.
Sentiment and Catalysts
Market Sentiment: Cautious, as traders are wary of overexposure ahead of central bank decisions.
Catalysts: U.S. CPI inflation prints, Fed commentary, revisions in U.S. economic data, and USD strength will be key triggers.
WTI Oil Forecast
Current Price and Context
WTI is trading with a bearish bias as the European session begins, pressured by concerns of waning demand and lingering oversupply in global oil markets. The U.S. dollar’s recent strength amid Fed-rate expectations adds further headwinds, limiting upside potential.
Key Drivers
Geopolitical Risks: Tensions continue in oil-producing regions, but so far more noise than fresh supply disruptions.
US Economic Data: Softer demand signals and weak economic indicators in major consuming economies dampen oil outlook.
FOMC Outcome: Anticipation of further rate cuts could soften demand, particularly if global economic fears worsen.
Trade Policy: No new trade policy shocks, though tariff and logistic risks remain part of the cost structure for energy trade.
Monetary Policy: Rising USD and tighter global financial conditions weigh on demand and increase cost of oil for buyers outside the U.S.
Technical Outlook
Trend: Bearish short-term momentum.
Resistance: ~$63.50, then ~$64.50.
Support: ~$61.80, followed by ~$60.50.
Forecast: WTI likely to test support levels around $61.80; recovery toward resistance will require strong demand data or supply disruption.
Sentiment and Catalysts
Market Sentiment: Cautious to bearish — traders are avoiding large long positions given risk of further downside.
Catalysts: U.S. inventory reports, OPEC+ announcements, Fed decision, global demand updates.
EUR/GBP Forecast
Current Price and Context
EUR/GBP is trading just under 0.8700, displaying limited movement as market participants await the BoE’s upcoming rate decision. The cross has been stuck in a tight range, with neither the euro nor the pound showing strong momentum—reflecting uncertainty over future monetary policy paths.
Key Drivers
Geopolitical Risks: Broader risk sentiment remains fragile, with no major positive or negative developments to tilt the pair.
US Economic Data: Indirect impact via global FX flows; USD strength affects both EUR and GBP, but more pronounced on GBP crosses.
FOMC Outcome: Fed policy outcomes continue to feed into global rate expectations, influencing relative appeal of both currencies.
Trade Policy: UK-EU trade dynamics remain stable for now; no fresh shocks in trade policy easing or tightening.
Monetary Policy: The BoE decision is key—any hawkish tone could support GBP, while dovish or cautious commentary may favor EUR in the cross.
Technical Outlook
Trend: Neutral-sideways range so far.
Resistance: 0.8700, then ~0.8725.
Support: ~0.8665, followed by ~0.8635.
Forecast: EUR/GBP is likely to stay within this band until the BoE decision—expect modest gains if GBP underperforms or if BoE signals dovish leanings; downside is limited unless the pound gets badly hit.
Sentiment and Catalysts
Market Sentiment: Muted/balanced—traders are in wait-and-see mode ahead of central bank news.
Catalysts: BoE rate decision and central bank speeches will be the main drivers; any UK inflation or wage surprises can also trigger moves.
GBP/USD Forecast
Current Price and Context
GBP/USD is trading near 1.3600, edging lower as markets await the Bank of England’s upcoming rate decision. The pair is feeling pressure from renewed U.S. dollar strength, and mixed UK economic signals, including inflation holding steady, suggest the BoE may tread carefully.
Key Drivers
Geopolitical Risks: Global uncertainty and risk-off sentiment are benefiting the USD, which puts downside pressure on GBP/USD.
US Economic Data: Strong U.S. dollar flows from recent data and risk sentiment fuel demand for safe-haven assets.
FOMC Outcome: Market expects the Fed to remain somewhat dovish, but dollar strength remains a factor.
Trade Policy: No major UK or US trade surprises, but broad external demand influences sentiment.
Monetary Policy: BoE is widely anticipated to hold rates, even as inflation remains above target; divergence between BoE and Fed policy augments uncertainty.
Technical Outlook
Trend: Mild bearish bias below resistance.
Resistance: 1.3650, then 1.3700.
Support: 1.3550, followed by 1.3500.
Forecast: GBP/USD may test lower support around 1.3550 if BoE signals caution or dovish lean. A hawkish surprise could push back toward resistance around 1.3650.
Sentiment and Catalysts
Market Sentiment: Cautious / mixed — traders wary of entering large positions before BoE clarity.
Catalysts: Bank of England rate decision, inflation and wage data from UK, USD momentum swings, and Fed guidance.
Wrap-up
Overall, sentiment is firmly anchored around the upcoming BoE decision, with GBP pairs set to dictate market direction. While commodities face headwinds from shifting Fed expectations and oil oversupply concerns, currency traders remain laser-focused on how the BoE balances sticky inflation with growth risks. The Pound is likely to lead today’s volatility.
Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!
Publication date:
2025-09-18 07:06:52 (GMT)
