Created
: 2025.10.21
- 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 eases back as CPI inflation data looms
Breaking news
GBP/USD eases back as CPI inflation data looms
New
2025.10.21 06:47
2025.10.21 06:47
2025.10.21 06:47
- GBP/USD is pushing back down to the 1.3400 region after a brief rally.
- Key technical averages are keeping price action under pressure from both sides.
- UK and US CPI inflation data is due this week, rate watchers to be on their toes.
GBP/USD caught a second softly bearish session on Monday, colling back into touch range of the 1.3400 handle. Cable's near-term bull run came to a quick end after price action ran into the 50-day Exponential Moving Average (EMA) near 1.3450 late last week, and now Pound Sterling (GBP) traders are bracing for a double-header of Consumer Price Index (CPI) inflation data from both the UK and the US this week.
It's a quiet start to the economic data docket on both sides of the Atlantic, but UK CPI inflation figures for September are slated for Wednesday. UK CPI inflation is expected to accelerate slightly for the year ended in September. However, the increases are not likely to be steep enough to spark any significant changes in the Bank of England's (BoE) current rate-targeting schedule.
US CPI inflation, which is due on Friday, is another matter entirely. US CPI inflation metrics are largely expected to remain unchanged in September, but datawatchers are on the lookout for any top side wriggles in inflation data as tariff impacts continue to leak their way through the US economy. The Federal Reserve (Fed) is firmly on pace to deliver two more interest rate cuts through the end of the year, but any sharp upticks in inflationary pressures could throw rate betting markets for a loop.
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.
Last updated
: 2025.10.21
Related articles
EUR/USD steady amid US shutdown deal speculation and cautious ECB tone
38 minutes agoFX Today: UK jobs report and the weekly ADP figures take centre stage
2025.11.11 04:03AUD/USD climbs after hawkish RBA remarks, rising Q3 inflation
2025.11.11 03:14Canadian Dollar looks higher as bullish recovery continues
2025.11.11 03:09USD/JPY climbs as Yen weakens on BoJ caution, US fiscal progress
2025.11.11 01:55Fed's Miran: Inflation is coming down
2025.11.11 01:50
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/USD steady amid US shutdown deal speculation and cautious ECB tone
EUR/USD holds firm at around 1.1550 on Monday, virtually unchanged as the Greenback trims some of its earlier losses amid news that the White House backs a deal to end the US shutdown in the coming days, as reported by Bloomberg. At the time of writing, the pair trades flat at 1.1560.
New
2025.11.11 06:26FX Today: UK jobs report and the weekly ADP figures take centre stage
The US Dollar (USD) traded without clear direction on Monday, as hopes grew for a potential deal to end the 40-day federal government shutdown in the coming days.
New
2025.11.11 04:03Gold rises despite easing Fed cut bets, US Dollar recovery
Gold price rallies over 2% on Monday as investors increases bets on a Federal Reserve (Fed) rate cut at the December meeting. Meanwhile, news of a possible reopening of the US government pushed the Greenback higher, yet the yellow-metal buyers remain reluctant to give way to earlier gains.
New
2025.11.11 03:24AUD/USD climbs after hawkish RBA remarks, rising Q3 inflation
AUD/USD appreciates toward 0.6520 on Monday at the time of writing, up 0.40% for the day.
New
2025.11.11 03:14Canadian Dollar looks higher as bullish recovery continues
The Canadian Dollar (CAD) hit a bit of a bump and run against the US Dollar (USD) on Monday, clawing back further ground in a much-needed technical bounce-back from 30-week lows.
New
2025.11.11 03:09Dow Jones Industrial Average looks upward as government restart gears turn
The Dow Jones Industrial Average (DJIA) steadies its grip on Monday, starting the new trading week holding near the 47,000 major handle.
New
2025.11.11 02:46USD/JPY climbs as Yen weakens on BoJ caution, US fiscal progress
USD/JPY holds around 154.00 on Monday at the time of writing, up 0.40% on the day, close to its eight-month high of 154.49. The pair remains supported by the persistent weakness of the Japanese Yen (JPY), pressured by uncertainty over the Bank of Japan (BoJ)'s policy outlook.
New
2025.11.11 01:55Fed's Miran: Inflation is coming down
Federal Reserve (Fed) governor Stephen Miran spoke in an interview with CNBC on Monday, discussing inflation and monetary policy. He stated that inflation is decreasing and that maintaining the course on rate cuts is the correct decision.
New
2025.11.11 01:50USD/CHF holds steady as US Dollar stabilizes following Senate funding bill progress
USD/CHF holds near 0.8060 on Monday at the time of writing, up 0.10% on the day, as the US Dollar (USD) stabilizes after the United States (US) Senate approved a measure to extend federal funding through January. This political progress helps ease fears of another potential government shutdown.
New
2025.11.11 00:52GBP/USD consolidates as US shutdown optimism and BoE data drive sentiment
GBP/USD consolidates during the North American session, remains steady at around 1.3150 amid growing speculation that the US government shutdown might end soon, a tailwind for the US Dollar, which trimmed some earlier losses.
New
2025.11.11 00:32Disclaimer:
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
