GBP/USD falls to two-month low as US Dollar momentum strengthens
GBP/USD tumbles during the North American session on Thursday as the US Dollar reaches a 9-week high, as depicted by the US Dollar Index (DXY), hitting 99.51 as hedge funds increase bets on USD gains towards the year-end.
  • GBP/USD drops to a two-month low as DXY hits a 9-week high at 99.39 amid a surge in bearish Euro.
  • Bloomberg reports funds betting on continued US Dollar strength into year-end as US equities retreat.
  • BoE’s Catherine Mann warns UK inflation expectations remain near 4%, delaying prospects of rate cuts until 2026.

GBP/USD tumbles during the North American session on Thursday as the US Dollar reaches a 9-week high, as depicted by the US Dollar Index (DXY), hitting 99.51 as hedge funds increase bets on USD gains towards the year-end. At the time of writing, the pair trades at 1.3314, down 0.67%, its lowest level since August 6.

Sterling sinks as strong US Dollar momentum and fiscal worries pressure Pound

US equities turned negative in the day, boosting the US Dollar, which is registering weekly gains of over 1.63% as of writing. A Bloomberg article reported that “Funds in Europe and Asia have ramped up option trades this week based on the view that currencies such as the Euro and Yen will weaken against the Dollar.”

Data from the Chicago Mercantile Exchange (CME) Group shows that “Bearish option trades on the euro versus the dollar expiring by December saw three times more trading volumes than bullish ones on Wednesday.”

Given the backdrop, no fundamental news aside from the US government shutdown is pushing the Greenback higher against most G10 FX currencies. US House Minority Leader Hakeem Jeffries is suggesting there have been no recent talks between House Republicans and Democrats.

Across the pond, Bank of England’s Catherine Mann said that inflation expectations in the UK remain too high, at around 4%. Consequently, traders are not expecting any rate cuts until April 2026, as money markets project a 0.25% cut to the Bank Rate.

Market participants are also worried about the upcoming Autumn Budget, which is expected to focus on fiscal discipline and potentially impose higher taxes, which could weigh on a fragile economy.

GBP/USD Price Chart – Daily

GBP/USD daily chart

Pound Sterling Price This week

The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Japanese Yen.

USD EUR GBP JPY CAD AUD NZD CHF
USD 1.43% 1.11% 2.48% 0.44% 0.52% 1.36% 1.24%
EUR -1.43% -0.41% 0.96% -1.01% -0.93% -0.11% -0.22%
GBP -1.11% 0.41% 1.47% -0.60% -0.52% 0.30% 0.19%
JPY -2.48% -0.96% -1.47% -1.97% -1.96% -1.17% -1.27%
CAD -0.44% 1.01% 0.60% 1.97% 0.14% 0.91% 0.79%
AUD -0.52% 0.93% 0.52% 1.96% -0.14% 0.82% 0.71%
NZD -1.36% 0.11% -0.30% 1.17% -0.91% -0.82% -0.12%
CHF -1.24% 0.22% -0.19% 1.27% -0.79% -0.71% 0.12%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

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LIVE QUOTES

Name / Symbol
Chart
% Change / Price
GBPUSD
1 D change
+0%
0
EURUSD
1 D change
+0%
0
USDJPY
1 D change
+0%
0

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