Select Language

GBP/USD rises as US shutdown prolongs, Fed data gap grows

Breaking news

GBP/USD rises as US shutdown prolongs, Fed data gap grows

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.04 00:37
GBP/USD rises as US shutdown prolongs, Fed data gap grows

update 2025.10.04 00:37

  • US ISM Services PMI slumps to neutral 50.0, highlighting weakening business activity and contractionary employment backdrop.
  • Fed's Miran and Goolsbee stress data dependence as shutdown halts NFP release, complicating policy guidance.
  • UK Services PMI slows to five-month low, yet BoE seen holding rates while Fed eyes 25 bps cut.

The Pound Sterling advances some 0.26% on Friday as the US government began its third day of shutdown and skipped the release of Nonfarm Payroll figures for September. Purchasing Managers Index (PMI), data from S&P Global and ISM in the US, are the main drivers of price action. The GBP/USD trades at 1.3471 after bouncing off daily lows of 1.3427.

GBP/USD climbs as services PMIs flash slowdown signs, while Fed-BoE divergence underpins Sterling strength

Business activity in the US deteriorated according to the ISM Services PMI. The Index dipped from 52.0 to 50.0, clinging to its neutral level, an indication of an economic slowdown. Economists estimated a deceleration to 51.7. In the meantime, S&P Global Services PMI exceeded forecasts of 53.9, rose to 54.2 in September.

Comments of the ISM release: "Commentary in general indicated moderate or weak growth, with more isolated observations of supplier delivery challenges. Employment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff."

Federal Reserve Governor Stephen Miran said that access to data is important for Fed officials. He commented that inflation expectations are well anchored, that real neutral rate is around 0.5% and that he has not being interviewed for the top job at the Fed.

At the same time, Chicago's Fed President Austan Goolsbee said that the Chicago Fed employment measures track unemployment at 4.3%. He added that although market expects cuts, the Fed will remain data dependent, and it is on a tricky spot with deterioration in both sides of the mandate.

Across the pond, business activity in the services sector in the UK grew at the slowest pace in five months in September. The S&P Global Services PMI dipped to 50.8 below estimates and August's print of 51.9.

Further GBP/USD upside expected on central bank divergence

Divergence between the Fed and the Bank of England, to dictate GBP/USD direction. The Federal Reserve is expected to cut rates by 25 basis points at the upcoming meeting. Conversely, the BoE is projected to stay pat as inflation was 3.8% YoY in August and is expected to rise to 4% in September.

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 Canadian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.34% -0.60% -1.39% 0.11% -0.87% -0.75% -0.33%
EUR 0.34% -0.27% -1.19% 0.45% -0.52% -0.42% -0.00%
GBP 0.60% 0.27% -0.85% 0.71% -0.32% -0.17% 0.26%
JPY 1.39% 1.19% 0.85% 1.54% 0.57% 0.51% 1.11%
CAD -0.11% -0.45% -0.71% -1.54% -0.93% -0.86% -0.45%
AUD 0.87% 0.52% 0.32% -0.57% 0.93% 0.10% 0.52%
NZD 0.75% 0.42% 0.17% -0.51% 0.86% -0.10% 0.57%
CHF 0.33% 0.00% -0.26% -1.11% 0.45% -0.52% -0.57%

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).


Date

Created

 : 2025.10.04

Update

Last updated

 : 2025.10.04

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

Fed's Jefferson nods to risks on both sides of the Fed's mandate

Federal Reserve (Fed) Vice President and Board of Governors member Phillip Jefferson acknowledged that ongoing risks to both sides of the Fed's policy mandates are seeing growing risks.
New
update2025.10.04 03:56

Gold climbs as shutdown fuels haven demand, eyes record high

Gold price advances during the North American session on Friday, up by 0.70% for the day as the US government shutdown extends to three days, poised to end the week positively for the seventh straight week. At the time of writing, XAU/USD trades at $3,882 after hitting a daily low of $3,838.
New
update2025.10.04 03:54

Fed's Logan warns inflation pressures persist, could be made worse

Federal Reserve (Fed) Bank of Dallas President Lorie Logan struck a nervous tone on Friday, warning that despite a rapidly-weakening labor market, a lot of potential policy moves could accidentally spark another round of renewed inflationary pressures.
New
update2025.10.04 03:49

Dow Jones Industrial Average rises 300 points on Friday

The Dow Jones Industrial Average (DJIA) caught a firm bid on Friday, rising 482 points, or 1.04%, bottom-to-top. The Dow briefly pierced the 47,000 major price handle for the first time ever, before easing back to a more sedate +300 points (0.65%) on the day.
New
update2025.10.04 03:44

AUD/USD holds near 0.6600 as Greenback weakens on US shutdown and soft PMI data

The Australian Dollar (AUD) holds modest gains versus the US Dollar (USD) on Friday, supported by a weaker Greenback as the United States (US) government shutdown drags on and the ISM Services Purchasing Managers Index (PMI) softens.
New
update2025.10.04 03:23

EUR/USD holds modest bid amid US shutdown and mixed PMI readings

The Euro (EUR) trades with a modest bid against the US Dollar (USD) on Friday, with EUR/USD stuck in this week's range of 1.1750-1.1700.
New
update2025.10.04 00:38

GBP/USD rises as US shutdown prolongs, Fed data gap grows

The Pound Sterling advances some 0.26% on Friday as the US government began its third day of shutdown and skipped the release of Nonfarm Payroll figures for September. Purchasing Managers Index (PMI), data from S&P Global and ISM in the US, are the main drivers of price action.
New
update2025.10.04 00:36

EUR/JPY rebounds after dip to one-month low

The Euro (EUR) gains traction against the Japanese Yen (JPY) on Friday, recovering after briefly slipping to its lowest level since September 9 on Thursday. At the time of writing, EUR/JPY trades near 173.00, staging a modest rebound from recent lows.
New
update2025.10.03 23:08

Fed's Miran: Inflation expectations are reasonably well anchored

Fed policymaker Stephen Miran stressed the importance of forward-looking analysis in shaping monetary policy.
New
update2025.10.03 22:54

GBP/JPY steadies near 198.00 as Yen weakens, UK PMI signals slowdown

The GBP/JPY steadies on Friday, snapping a four-day losing streak after sliding to its lowest level since August 7 on Thursday. At the time of writing, the cross is holding firm near the 198.00 handle, easing back from an intraday high around 198.55.
New
update2025.10.03 22:16

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