GBP/USD slips as US Dollar rebounds, traders await UK and US CPI data

Sterling weakens below 1.34 as fiscal tightening looms in Britain

A scarce economic docket triggered by the government shutdown in the US keeps traders leaning on social media posts or comments by US President Donald Trump. In addition, the upcoming release of the latest Consumer Price Index (CPI) figures in the US on Friday keeps price action subdued.

Meanwhile, in the UK, Public Sector Net Borrowing in September reached 20.24 billion pounds, lower than the median forecast of 20.5 billion pounds deficit expected by analysts.

The UK’s Chancellor Rachel Reeves hinted that she would raise taxes and cut spending to remain on course to meet her fiscal targets.

She also aims to avoid upsetting investors who have already pushed up British borrowing costs sharply. Last week, she made comments that she would like to have a bigger fiscal buffer to maneuver amidst global financial markets, adding that creating one in the November 26 budget would require some trade-offs.

In the meantime, traders are eyeing the release of UK inflation data on Wednesday. Estimates suggest that CPI will rise from 3.8% to 4% in September, but a miss on the mark could open the door for the Bank of England to resume its easing cycle.

GBP/USD Price Chart – Daily

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		0.47%	0.36%	0.83%	-0.02%	-0.12%	-0.16%	0.41%
EUR	-0.47%		-0.11%	0.46%	-0.49%	-0.49%	-0.69%	-0.04%
GBP	-0.36%	0.11%		0.30%	-0.38%	-0.38%	-0.58%	0.05%
JPY	-0.83%	-0.46%	-0.30%		-0.91%	-0.99%	-1.08%	-0.52%
CAD	0.02%	0.49%	0.38%	0.91%		-0.06%	-0.21%	0.43%
AUD	0.12%	0.49%	0.38%	0.99%	0.06%		-0.21%	0.40%
NZD	0.16%	0.69%	0.58%	1.08%	0.21%	0.21%		0.64%
CHF	-0.41%	0.04%	-0.05%	0.52%	-0.43%	-0.40%	-0.64%

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).