GBP/USD trips down below 1.3350 as Oil surges, Fed outlook boosts US Dollar

GBP/USD trims some of its previous-day gains on Friday, down by 0.84%, as traders turn risk-averse amid an escalation of the Middle East war and price in no rate cuts by the Federal Reserve (Fed) in 2026. At the time of writing, the pair trades below 1.3350 after hitting a daily high of 1.3442. GBP/USD drops after hitting… GBP/USD trims some of its previous-day gains on Friday, down by 0.84%, as traders turn risk-averse amid an escalation of the Middle East war and price in no rate cuts by the Federal Reserve (Fed) in 2026. At the time of writing, the pair trades below 1.3350 after hitting a daily high of 1.3442. GBP/USD drops after hitting 1.3442, pressured by risk aversion and a strong US Dollar.Oil-driven inflation fears lift DXY as markets see no Fed cuts in 2026.The BoE's unanimous hold sparks repricing, with markets eyeing 78 bps of hikes this year.GBP/USD trims some of its previous-day gains on Friday, down by 0.84%, as traders turn risk-averse amid an escalation of the Middle East war and price in no rate cuts by… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.