Pound Sterling holds onto gains tied to the Fed’s move, with UK GDP data in view before the Bank of England’s decision next week.
GBP remains cautious versus major peers on Thursday, broadly maintaining its momentum after the Federal Reserve cut rates. Markets are braced for a wave of UK data from Friday through next Thursday, ahead of the BoE’s policy meeting. The Office for National Statistics will release October GDP, three months of labor market data through October, and November CPI in the run-up to the BoE decision.
On Friday, investors will scrutinize the UK GDP report, which is expected to show a modest 0.1% expansion after a similar contraction the previous month. Should growth prove resilient early in the fourth quarter, it could bolster optimism about the UK’s growth outlook, especially as the fiscal watchdog has nudged this year’s GDP forecast up to 1.5% from 1.0% projected in March.
Within the GDP release, attention will also fall on Manufacturing and Industrial Production figures. Both are anticipated to show monthly gains, aided by a low base effect.
On the monetary front, traders are growing more confident that the BoE will cut rates by 25 basis points to 3.75% next week, citing soft labour market conditions and weakening wage pressures.
Pound Sterling Price Today
The table below reflects today’s percentage moves of the pound against major currencies. The pound performed strongest against the Australian dollar.
USD EUR GBP JPY CAD AUD NZD CHF
USD -0.06% 0.16% -0.03% 0.09% 0.44% 0.20% -0.21%
EUR 0.06% 0.22% 0.04% 0.15% 0.50% 0.26% -0.15%
GBP -0.16% -0.22% -0.17% -0.04% 0.28% 0.04% -0.37%
JPY 0.03% -0.04% 0.17% 0.13% 0.48% 0.22% -0.16%
CAD -0.09% -0.15% 0.04% -0.13% 0.36% 0.10% -0.30%
AUD -0.44% -0.50% -0.28% -0.48% -0.36% -0.24% -0.65%
NZD -0.20% -0.26% -0.04% -0.22% -0.10% 0.24% -0.41%
CHF 0.21% 0.15% 0.37% 0.16% 0.30% 0.65% 0.41%
The heat map illustrates percentage changes between major currencies, with the base currency in the left column and the quote currency across the top. For example, selecting GBP as the base and USD as the quote displays the corresponding percentage change in that box.
Daily market movers: Fed signals goods inflation to peak in early 2026
- The Pound trades near a fresh seven-week high around 1.3400 against the USD on Thursday as the pound outperforms while the dollar pauses after the Fed’s rate cut.
- The US Dollar Index (DXY) hovers near a seven-week low near 98.54 after the Fed’s announcement.
- The Fed trimmed the federal funds rate by 25 basis points to a 3.50%–3.75% range and signaled only one additional cut in 2026.
- The dollar softened partly due to dovish elements in the statement, including a modest inflation outlook and a note about unemployment ticking up. The Fed also cautioned that goods inflation might peak in Q1 if tariffs don’t change.
- Ahead of the decision, markets had expected a pause after the rate reduction, given inflation staying above 2% for an extended period.
- Powell’s remarks carried a hint of hawkishness, noting that the bar for further rate cuts remains high and the Fed is ready to wait and see how the economy evolves.
- Today’s session will also spotlight US Initial Jobless Claims for the week ending December 5, due at 13:30 GMT, with consensus around 220k new claims, higher than the prior 191k.
Technical view: GBP/USD eyes a push toward 1.3470
The Pound trades near 1.3370 against the USD on Thursday, holding above the rising 20-day EMA at 1.3266, which has turned upward and supports the uptrend. Any pullbacks are likely to find buyers around this key level.
The 14-day RSI sits at 63 and still points to positive momentum.
If the pair stays above the 20-day EMA of 1.3266, it could extend higher toward the October 17 high of 1.3471. A daily close below that EMA, however, would turn the bias neutral and could push the pair down toward the November 25 low near 1.3100.
(Note: This analysis was aided by an AI tool.)
