Pound Sterling Price News and Forecast: GBP/USD backslid over 0.5% after the BoE held rates steady

FXStreet Team FXStreet

GBP/USD sinks after BoE holds rates steady, UK Retail Sales in the barrel

GBP/USD tumbled backwards on Thursday, falling a little over one-half of one percent and pushing the Pound Sterling (GBP) back below the key 1.3600 handle against the US Dollar (USD) after a brief spat above the major technical level. The Bank of England (BoE) held interest rates flat in a 7-to-2 vote, and a general uptick in market unease helped keep the Greenback well-bid across the board.

UK Retail Sales for August are due on Friday, but the headline figure will provide a mixed bag at best for data watchers. Retail Sales data is not typically adjusted by total sales volume, and high inflation can skew the sales figures to the upside. Functionally, Retail Sales cannot differentiate between consumers struggling to pay for the same amount of goods with a larger proportion of their paycheque, and consumers properly injecting wage gains into the domestic economy. Read more...

GBP/USD slips as BoE holds rates, scales back QT and signals future cuts

The British Pound (GBP) reversed its course, dropping over 0.51% on Thursday following the Bank of England’s (BoE) decision to hold rates unchanged, after the Federal Reserve (Fed) began its 2025 easing cycle. The GBP/USD pair trades at 1.3551 after hitting a daily high of 1.3660.

The economic schedule on both sides of the Atlantic has been busy. US Initial Jobless Claims for the week ending September 13 came at 231K, below forecasts of 240K and the previous week upward revised 264K. Continuing Claims dipped from 1.939 million to 1.920 million. Read more...

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