GBP/USD hammered down to over two-week low, below mid-1.3100s on Bailey's dovish remarks
The GBP/USD pair continues losing ground for the third straight day – also marking the fourth day of a negative move in the previous five – and plummets to over a two-week low during the first half of the European session on Thursday. Spot prices currently trade below mid-1.3100s, down nearly 1.0% for the day, and seem vulnerable to decline further in the wake of Bank of England (BoE) Governor Andrew Bailey's dovish remarks.
In an interview with the Guardian newspaper published this Thursday, Bailey said that there was a chance that the BoE could become a bit more aggressive in cutting rates if there's further good news on inflation. The markets were quick to react and are now pricing in a 90% chance of a 25 basis points interest cut at the next BoE meeting in November. This, in turn, weighs heavily on the British Pound (GBP), which, along with sustained US Dollar (USD) buying, contributes to the GBP/USD pair's steep intraday fall. Read more...
GBP/USD drops to near 1.3200 due to risk-off mood amid rising tensions in the Middle East
GBP/USD extends its losing streak for the third consecutive day, trading around 1.3200 during the Asian session on Thursday. The risk-sensitive GBP/USD pair receives downward pressure due to the safe-haven flows amid escalating Middle-East tensions.
The Israeli Broadcasting Authority (IBA) reported that Israel's security cabinet has decided to issue a strong response to the recent Iranian attack. On Tuesday night, Iran launched over 200 ballistic missiles and drone strikes on Israel. Read more...
GBP/USD softens below 1.3300 amid renewed US Dollar demand
The GBP/USD pair extends its downside to around 1.3265 during the early Asian session on Thursday. The renewed demand for the US dollar (USD) amid the rising geopolitical tensions in the Middle East provides some support to the major pair. The US September ISM Services Purchasing Managers Index (PMI), the weekly Initial Jobless Claims, and the final S&P Global Services PMI will be in the spotlight on Thursday.
Iran fired more than 180 missiles at Israel on Tuesday, its biggest-ever direct attack on the country. Israel and the United States vowed retribution for the attack. A sign that conflict in the region is intensifying and the fear of wider war boosts the safe-haven flows, benefiting the Greenback against the Pound Sterling (GBP). Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD targets yearly highs beyond 1.1100
Significant losses in the US Dollar allow EUR/USD to edge closer to its yearly highs, comfortably trading beyond the 1.1100 level after US inflation and jobs data releases.

GBP/USD meets a decent barrier near 1.2950
GBP/USD secures its third straight day of gains, smashing well past the 1.2900 yardstick and reaching new weekly highs, fueled by the increasing selling pressure in the Greenback.

Gold looks consolidative around $3,130 after US data
Following US data releases, Gold prices now seem to have embarked on a consolidative range near the $3,130 mark. This robust performance comes amid a pronounced bearish bias in the Greenback and mixed US yields.

Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge
Cardano stabilizes around $0.62 on Thursday after a sharp recovery the previous day, triggered by US Donald Trump’s decision to pause tariffs for 90 days except for China and other countries that had retaliated against the reciprocal tariffs announced on April 2.

Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.