Select Language

GBP/USD tumbles ahead of full data docket

Breaking news

GBP/USD tumbles ahead of full data docket

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.09.03 08:37
GBP/USD tumbles ahead of full data docket

update 2025.09.03 08:37

  • GBP/USD fell sharply on Tuesday, declining over 1% on the day.
  • Risk aversion roared back into markets to kick off the September trading window.
  • Key US data releases will pile onto investors through the remainder of the week.

GBP/USD tumbled sharply on Tuesday, declining over 1.15% and sinking back below the 1.3800 handle for the first time in almost a month. Broad-market investor sentiment soured heading into the September trading month, with safe-haven flows into the US Dollar (USD) surging.

Coming up on Wednesday

A smattering of speeches and public appearances from policymakers at both the Bank of England (BoE) and the Federal Reserve (Fed) are expected throughout the day. However, not much new is expected on the central banking front from either side of the Atlantic.

JOLTS Job Openings from July are due on Wednesday, and will be followed by the ISM's Services PMI component on Thursday, with US Nonfarm Payrolls (NFP) due on Friday. JOLTS have had a rough run as of late, with a poor correlation to US NFP figures over the past two years, but the private payroll estimator is set to take on renewed importance to investors who are rapidly losing faith in official figures. The Trump administration has been fast-tracking its strategy of sacking officials who allow unfavorable economic data to be published, putting pressure on investors to consider where they will get accurate data in the future.

NFP remains the reigning data champion

NFP net job gains will dominate this week's general market water supply. The Federal Reserve (Fed) is barreling toward an interest rate cut on September 17 thanks to its sometimes-conflicting dual mandate of influencing interest rates to both bolster job creation and control inflation. A recent bout of softening US labor figures has investor hopes riding high that the Fed will brush off a recent uptick in inflation pressures and deliver a rate cut in a few weeks to prop up US employment numbers that took a sharp downward turn heading into the middle of the year.

GBP/USD daily chart


Pound Sterling FAQs

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.


Date

Created

 : 2025.09.03

Update

Last updated

 : 2025.09.03

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

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

DXY: JOLTS Job openings today - OCBC

US Dollar (USD) rose overnight but range remains confined to recent levels. DXY last at 98.28 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
update2025.09.03 18:17

USD/CHF hovers around 0.8050 as traders adopt caution ahead of Fed Beige Book

USD/CHF struggles after two days of gains, trading around 0.8040 during the European hours on Wednesday. The pair receives downward pressure as the US Dollar (USD) faces challenges amid rising odds of the US Federal Reserve (Fed) delivering interest rate cut in September.
New
update2025.09.03 18:16

UK's Reeves: Britain's economy is not broken

UK Finance Minister Rachel Reeves said on Wednesday that "Britain's economy is not broken."
New
update2025.09.03 18:13

USD: Dollar rally may be unwound - ING

Yesterday's dollar rally lacked a clear catalyst beyond the selloff in global long-dated bonds - including the high-profile UK gilts. Rising debt concerns outside the US may have triggered some unwinding of abundant USD longs.
New
update2025.09.03 18:09

USD: The really big chunks are yet to come - Commerzbank

The US ISM manufacturing index was good for a few short-term pips, but it failed to give the dollar a real blow yesterday. This is hardly surprising.
New
update2025.09.03 18:02

GBP/USD may retest the 1.3340 low - UOB Group

Sharp drop in Pound Sterling (GBP) may retest the 1.3340 low; a sustained decline below this level is unlikely.
New
update2025.09.03 17:54

GBP: Reaction to gilts selloff looks a bit overblown - ING

The Pound Sterling (GBP) had a rough Tuesday as back-end gilt yields rose, with the 30-year hitting its highest level since 1998, ING's FX analyst Francesco Pesole notes.
New
update2025.09.03 17:46

EUR/USD: 2-way risks on a daily chart - OCBC

Euro (EUR) saw a larger pullback overnight on renewed focus on French politics. Pair was last at 1.1649, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
update2025.09.03 17:36

EUR/USD: Major support at 1.1570 is likely out of reach - UOB Group

Oversold decline in Euro (EUR) could drop below 1.1600; the major support at 1.1570 is likely out of reach.
New
update2025.09.03 17:33

EUR/JPY Price Forecast: Rises above 173.00 due to prevailing bearish bias

EUR/JPY continues its winning streak for the fifth successive session, trading around 173.20 during the European hours on Wednesday. The technical analysis of the daily chart suggests the prevailing bullish market bias as the currency cross is remaining within the ascending channel pattern.
New
update2025.09.03 17:32

Disclaimer:arw

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.

  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Cancel