British Pound drops against US Dollar, Fed-BoE policy in focus
- The British Pound declines further against the US Dollar amid uncertainty surrounding the Fed’s policy announcement.
- Both the Fed and the BoE are expected to leave interest rates unchanged on Wednesday.
- US President Trump calls for interest rate cuts from the Fed.
The British Pound (GBP) extends its decline against the US Dollar (USD) to near 1.3277 during the European trading session on Tuesday, the lowest level seen in over three weeks. The GBP/USD pair faces selling pressure as the US Dollar rises further, with investors turning cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | 0.06% | 0.11% | -0.12% | 0.35% | 0.09% | 0.03% | |
| EUR | -0.03% | 0.03% | 0.09% | -0.13% | 0.32% | 0.08% | 0.00% | |
| GBP | -0.06% | -0.03% | 0.07% | -0.15% | 0.31% | 0.06% | 0.00% | |
| JPY | -0.11% | -0.09% | -0.07% | -0.23% | 0.24% | -0.01% | -0.05% | |
| CAD | 0.12% | 0.13% | 0.15% | 0.23% | 0.49% | 0.20% | 0.17% | |
| AUD | -0.35% | -0.32% | -0.31% | -0.24% | -0.49% | -0.23% | -0.32% | |
| NZD | -0.09% | -0.08% | -0.06% | 0.00% | -0.20% | 0.23% | -0.05% | |
| CHF | -0.03% | -0.01% | 0.00% | 0.05% | -0.17% | 0.32% | 0.05% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
In European trade, the US Dollar Index (DXY), which gauges the Greenback's value against six major currencies, posts a fresh monthly high at 101.64.
According to the CME FedWatch tool, traders see a 62% chance that the Fed will leave interest rates unchanged in the range of 3.50%-3.75% in the policy announcement on Wednesday. Investors will closely track the policy announcement and Fed Chairman Kevin Warsh’s press conference to know whether the central bank’s decision will lean towards United States (US) President Donald Trump’s economic agenda.
On Monday, US President Trump urged Fed Chair Warsh to lower interest rates, adding that there was a good inflation report recently, costs were falling rapidly, and that prices should drop significantly once the Gulf War ends.
On the Pound Sterling front, investors await the Bank of England’s (BoE) monetary policy announcement on Thursday. The BoE is expected to leave interest rates unchanged at 3.75%, with a 7-2 majority. The major focus of financial markets will be on commentary on inflation and the economic outlook.
Economic Indicator
Fed Interest Rate Decision
The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future rates).
Read more.Next release: Wed Jul 29, 2026 18:00
Frequency: Irregular
Consensus: 3.75%
Previous: 3.75%
Source: Federal Reserve
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
