British Pound trades higher at start of UK data-packed, BoE policy week
- The British Pound starts positively at the start of the UK busy week.
- Investors will be pay close attention to the UK employment and CPI data ahead of the BoE’s policy decision.
- The BoJ is highly expected to hike interest rates on Friday.
The British Pound (GBP) is up against its major currency peers, except North American currencies, at the start of the United Kingdom (UK) data-packed week and the Bank of England’s (BoE) monetary policy announcement. As of writing, the Pound Sterling is up 0.14% at around 208.00 against the Japanese Yen (JPY).
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.25% | 0.14% | 0.28% | 0.02% | 0.33% | 0.50% | 0.24% | |
| EUR | -0.25% | -0.08% | 0.00% | -0.26% | 0.07% | 0.25% | -0.02% | |
| GBP | -0.14% | 0.08% | 0.08% | -0.15% | 0.16% | 0.34% | 0.00% | |
| JPY | -0.28% | 0.00% | -0.08% | -0.26% | 0.07% | 0.21% | -0.08% | |
| CAD | -0.02% | 0.26% | 0.15% | 0.26% | 0.30% | 0.47% | 0.16% | |
| AUD | -0.33% | -0.07% | -0.16% | -0.07% | -0.30% | 0.18% | -0.18% | |
| NZD | -0.50% | -0.25% | -0.34% | -0.21% | -0.47% | -0.18% | -0.34% | |
| CHF | -0.24% | 0.02% | -0.00% | 0.08% | -0.16% | 0.18% | 0.34% |
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).
This week, investors will pay close attention to the UK employment data for three months ending July on Tuesday and the Consumer Price Index (CPI) data for August on Wednesday ahead of the BoE’s interest rate decision on Thursday.
Both the employment and the inflation data are expected to have a significant impact on BoE’s interest rate expectations for the policy meeting this week.
The UK labor market report is expected to show that the ILO Unemployment Rate increased to 5% from 4.9% in three months ending June. Average Earnings Including Bonuses, a key measure of wage growth, is expected to arrive lower at 3.9% Year-on-Year (YoY) from the previous reading of 4.1%, with figures for wage growth Excluding Bonuses remaining steady at 3.5%.
Meanwhile, UK’s core CPI – which excludes volatile components of food, energy, alcohol and tobacco – rose at a faster pace of 2.7% YoY against the previous reading of 2.6%.
Lately, markets experts believe that strong UK monthly Gross Domestic Product (GDP) data for July has kept BoE interest rate hike expectations alive.
UK data beat keeps BoE decision a close call
Analysts at Societe Generale note that UK growth data surprised to the upside in July, with "UK July GDP 0.4% m/m, 0.4% 3m/3m, above forecast." They highlight a broad-based advance across sectors, as "Services 0.4%, manufacturing 0.9%, construction 0.1%," all posted gains on the month.
According to Societe Generale, this "surprise July GDP gain of 0.4% could means close BoE call next week," potentially sharpening the debate over near-term policy moves. Even so, the bank maintains that the Monetary Policy Committee is likely to stay cautious, reiterating its baseline view that the BoE will remain "on hold at 3.75% through year-end."
This week, the JPY will be influenced by the Bank of Japan’s (BoJ) monetary policy announcement on Friday. The BoJ is widely anticipated to hike interest rates, which underpins policy guidance as major trigger for Yen’s next move.
Strategists at HSBC note that markets are increasingly pricing a quicker normalisation of Japanese monetary policy, with investors now expecting the Bank of Japan “to tighten policy faster than it has done in recent years.” They point out that “overnight index swaps imply around 75bp of cumulative hikes by April 2027 and even assign meaningful odds of a hike at the 18 September meeting, which stands out as unusual.” HSBC argues that these repricings “suggest investors anticipate a change in how the BoJ responds to inflation and growth risks.”
Economic Indicator
ILO Unemployment Rate (3M)
The ILO Unemployment Rate released by the UK Office for National Statistics is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the UK Economy. If the rate goes up, it indicates a lack of expansion within the UK labor market. As a result, a rise leads to a weakening of the UK economy. Generally, a decrease of the figure is seen as bullish for the Pound Sterling (GBP), while an increase is seen as bearish.
Read more.Next release: Tue Sep 15, 2026 06:00
Frequency: Monthly
Consensus: 5%
Previous: 4.9%
Source: Office for National Statistics
The Unemployment Rate is the broadest indicator of Britain’s labor market. The figure is highlighted by the broad media, beyond the financial sector, giving the publication a more significant impact despite its late publication. It is released around six weeks after the month ends. While the Bank of England is tasked with maintaining price stability, there is a substantial inverse correlation between unemployment and inflation. A higher than expected figure tends to be GBP-bearish.
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.
