GBP/USD steady as Fed cut rates, traders await Powell’s guidance
- GBP/USD holds at 1.2963 after Fed's unanimous 25 bps rate cut.
- Fed acknowledges solid growth and easing labor conditions; inflation remains “somewhat elevated.”
- Powell’s upcoming remarks could signal Fed’s stance on future easing amid balanced risks.
The GBP/USD barely moved after the Federal Reserve (Fed) cut rates by 25 basis points (bps) to the 4.50%—4.75% range. At the time of writing, the pair is at 1.2963, up 0.64%, as traders brace for Fed Chairman Jerome Powell's press conference.
Fed trims rates to 4.50%-4.75% range, highlights economic resilience and cautious inflation progress
The statement mentions that Fed officials continued to see the economy expand solidly, although labor market conditions had eased. Regarding inflation, they noted that it “has made progress toward the Committee's 2 percent objective but remains somewhat elevated.”
Fed policymakers added that the risks of achieving its dual mandate “are roughly in balance,” adding that the economic outlook is uncertain. They will remain attentive to the risks of both sides of the dual mandate.
Regarding the balance sheet, they would continue to reduce its holdings of Treasury securities, agency debt and agency mortgage‑backed securities.
When making future decisions, the FOMC will consider incoming data, the evolving outlook, and the balance of risks. It is worth noting that the decision was unanimous, as Governor Michelle Bowman supported the rate cut.
Next would be the Fed Chair Jerome Powell's press conference at 14:00 ET.
GBPUSD Price Chart – Daily
The pair barely moved, though it remained below the confluence of the 20- and 100-day Simple Moving Averages (SMAs) at 1.2982-87. Powell's hawkish message could push the GBP/USD lower, first to 1.2950, ahead of the 1.2900 figure.
On the other hand, the GBP/USD could test the daily high at 1.3009.
British Pound 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 US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.52% | -0.64% | -0.95% | -0.51% | -1.39% | -1.19% | -0.35% | |
| EUR | 0.52% | -0.12% | -0.41% | 0.02% | -0.85% | -0.65% | 0.19% | |
| GBP | 0.64% | 0.12% | -0.28% | 0.13% | -0.74% | -0.54% | 0.31% | |
| JPY | 0.95% | 0.41% | 0.28% | 0.42% | -0.45% | -0.29% | 0.61% | |
| CAD | 0.51% | -0.02% | -0.13% | -0.42% | -0.87% | -0.67% | 0.18% | |
| AUD | 1.39% | 0.85% | 0.74% | 0.45% | 0.87% | 0.19% | 1.07% | |
| NZD | 1.19% | 0.65% | 0.54% | 0.29% | 0.67% | -0.19% | 0.86% | |
| CHF | 0.35% | -0.19% | -0.31% | -0.61% | -0.18% | -1.07% | -0.86% |
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).
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
