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GBP/USD eases from October highs as markets digest US data

  • GBP/USD pares gains after testing levels above 1.3500.
  • Mixed US data offers limited direction for the US Dollar, as strong Q3 growth contrasts with softer activity data.
  • Markets continue to price in further monetary policy easing by the Federal Reserve into 2026.

The British Pound (GBP) pares earlier gains against the US Dollar (USD) on Tuesday as traders digest a mixed batch of US economic data. At the time of writing, GBP/USD trades around 1.3478, easing slightly after climbing to its highest level since October 1, near 1.3518.

Sterling eased modestly as the US Dollar found support following stronger-than-expected US Q3 Gross Domestic Product (GDP) data. The US Bureau of Economic Analysis reported that the US economy expanded at an annualised pace of 4.3% in Q3, beating the 3.3% market forecast and accelerating from the previous 3.8% estimate.

Inflation metrics within the GDP report remained firm. The GDP Price Index rose 3.7% in Q3, above the 2.7% market forecast and up from 2.1% in Q2. Core Personal Consumption Expenditures increased 2.9% in Q3, in line with expectations and higher than 2.6% in Q2, while Personal Consumption Expenditures Prices rose 2.8% in Q3, matching forecasts and accelerating from 2.1% in Q2.

Durable Goods Orders fell 2.2% in October, compared with expectations for a 1.5% decline and following a 0.7% rise in September. Orders excluding defense declined 1.5% in October, down from a 0.1% increase in September, while orders excluding transportation rose 0.2% in October, below the 0.3% forecast and slowing from 0.7% in September.

Industrial Production fell 0.1% MoM in October and then rebounded 0.2% MoM in November, beating the 0.1% market forecast.

US Conference Board Consumer Confidence slipped in December, with the index falling to 89.1, missing the 91.0 market forecast. While the reading was above the initially reported 88.7 for November, that figure was later revised higher to 92.9.

Despite the mild rebound in the US Dollar, the broader outlook remains tilted to the downside, as markets continue to price in further monetary policy easing by the Federal Reserve (Fed) into 2026.

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 Euro.

USDEURGBPJPYCADAUDNZDCHF
USD-0.10%-0.15%-0.42%-0.24%-0.49%-0.62%-0.19%
EUR0.10%-0.05%-0.33%-0.13%-0.39%-0.52%-0.10%
GBP0.15%0.05%-0.27%-0.10%-0.34%-0.46%-0.05%
JPY0.42%0.33%0.27%0.19%-0.04%-0.22%0.25%
CAD0.24%0.13%0.10%-0.19%-0.23%-0.39%0.06%
AUD0.49%0.39%0.34%0.04%0.23%-0.13%0.29%
NZD0.62%0.52%0.46%0.22%0.39%0.13%0.43%
CHF0.19%0.10%0.05%-0.25%-0.06%-0.29%-0.43%

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).

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

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