Created
: 2025.07.16
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
GBP/USD loses further ground after hot US CPI inflation print rocks rate cut bets
World FX news
Breaking news
GBP/USD loses further ground after hot US CPI inflation print rocks rate cut bets
2025.07.16 01:41
2025.07.16 01:41
- GBP/USD backslid again on Tuesday after US CPI clocked rising price pressures.
- The Pound Sterling is down nearly 3% against the Greenback in July.
GBP/USD shed another two-thirds of one percent top-to-bottom on Tuesday, extending into an eighth consecutive day of Cable losses. The US Dollar (USD) caught a risk-off bid after US Consumer Price Index (CPI) inflation rose through June, reigniting fears of another pushback on the Federal Reserve's expected pace of rate cuts through the year-end.
US CPI up, rate cut hopes down
US CPI inflation crept up through the end of the second quarter. Even though the numbers mostly met or beat expectations, investors still feel the pinch from rising prices. In June, the annualized headline CPI inflation rate increased to 2.7% year-over-year, drifting away from the Fed's target range of 2%. With inflation still lingering, hopes for an early rate cut from the Fed have faded.
According to the CME's FedWatch Tool, traders now fully expect the Fed to hold rates steady at the July meeting. Expectations for a September rate cut also diminished after the CPI release, with a 44% chance of rates remaining unchanged. However, markets are still optimistic about two rate cuts in 2025, with an 80% chance of at least a quarter-point reduction in October with a follow-up rate trim expected in December.
GBP/USD daily chart
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Last updated
: 2025.07.16
Related articles
EUR/JPY falls to near 170.00 as BoJ Meeting Minutes signal potential for rate hikes
16 minutes agoAUD/JPY Price Forecast: Bears await acceptance below 95.00; 200-day SMA breakdown in play
25 minutes agoIndia Gold price today: Gold steadies, according to FXStreet data
26 minutes agoUSD/INR opens gap up as Trump threatens higher tariffs on India again
27 minutes agoGBP/USD holds steady above 1.3250 as investors brace for US ISM Services PMI release
57 minutes agoEUR/USD inches lower to near 1.1550 ahead of HCOB PMI data from Eurozone, Germany
2025.08.05 12:43
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
EUR/JPY falls to near 170.00 as BoJ Meeting Minutes signal potential for rate hikes
EUR/JPY remains subdued for the third successive session, trading around 170.20 during the Asian hours on Tuesday.
New
2025.08.05 13:46AUD/JPY Price Forecast: Bears await acceptance below 95.00; 200-day SMA breakdown in play
The AUD/JPY cross struggles to capitalize on its modest Asian session uptick and languishes near the 95.00 psychological mark, close to a nearly four-week low touched the previous day. Moreover, the technical setup suggests that the path of least resistance for spot prices is to the downside.
New
2025.08.05 13:38India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Tuesday, according to data compiled by FXStreet.
New
2025.08.05 13:36USD/INR opens gap up as Trump threatens higher tariffs on India again
The Indian Rupee (INR) opens on a gap-down note against the US Dollar (USD) on Tuesday, sending the USD/INR pair to its all-time high of around 88.25. The Indian currency faces intense selling pressure as trade tensions between India and the United States (US) have escalated.
New
2025.08.05 13:36Gold price bulls seem reluctant amid modest USD strength; downside seems cushioned
Gold price (XAU/USD) struggles to capitalize on a modest Asian session uptick and currently trades just below a nearly two-week high touched the previous day.
New
2025.08.05 13:23GBP/USD holds steady above 1.3250 as investors brace for US ISM Services PMI release
The GBP/USD pair trades on a flat note near 1.3280 during the Asian trading hours on Tuesday. Nonetheless, rising odds of Federal Reserve (Fed) rate cuts could weigh on the US Dollar (USD) against the Cable.
New
2025.08.05 13:06EUR/USD inches lower to near 1.1550 ahead of HCOB PMI data from Eurozone, Germany
EUR/USD extends its losses for the second consecutive day, trading around 1.1560 during the Asian hours on Tuesday. The pair depreciates as the US Dollar (USD) gains ground following traders' caution, driven by the latest global trade developments and shifting expectations for monetary policy.
New
2025.08.05 12:43Silver Price Forecast: XAG/USD steadies near $37.50 amid growing odds of Fed rate cut
Silver price (XAG/USD) moves little after registering gains in the previous two sessions, trading around $37.50 per troy ounce during the Asian hours on Tuesday.
New
2025.08.05 12:10Japanese Yen surrenders intraday gains; USD/JPY retakes 147.00 amid modest USD uptick
The Japanese Yen (JPY) touched a nearly two-week high against its American counterpart following the release of the June Bank of Japan (BoJ) meeting Minutes, which reaffirmed bets for an imminent interest rate hike by the year-end.
New
2025.08.05 11:32NZD/USD remains weak near 0.5900 despite upbeat Chinese Services PMI data
The NZD/USD pair trades in negative territory near 0.5900 during the Asian trading hours on Tuesday. The New Zealand Dollar (NZD) remains weak against the US Dollar (USD) despite the upbeat Chinese economic data.
New
2025.08.05 11:11Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
