Pound Sterling Price News and Forecast: GBP/USD moves little as traders adopt caution ahead of UK CPI data

FXStreet Team FXStreet

GBP/USD stays below 1.3400 as UK borrowing exceeds forecasts in H1

GBP/USD loses ground for the fourth consecutive session, trading around 1.3380 during the Asian hours on Wednesday. The pair face challenges ahead of the United Kingdom’s (UK) Consumer Price Index (CPI) and Retail Price Index data for September.

The Pound Sterling (GBP) weakens as the UK government borrowed £7.2 billion more than expected in the first half of the fiscal year, with the budget deficit rising to £99.8 billion. This exceeded the Office for Budget Responsibility’s (OBR) £92.6 billion forecast, as debt interest payments surged 66% to £9.7 billion in September — the highest on record for the month. Read more...

GBP/USD extends into a third day of declines ahead of UK CPI print

GBP/USD stepped into a third straight bearish session on Tuesday, shedding weight and slipping back below the 1.3400 handle. Pound Sterling (GBP) traders are pulling back from their bids ahead of the latest round of Consumer Price Index (CPI) inflation data due from the UK on Wednesday, with the US side of the CPI data docket due on Friday.

Headline UK CPI inflation is expected to rose to 4.0% YoY in September, while core CPI is forecast to tick up to 3.7%. With UK inflation pressures still on the rise, the Bank of England’s (BoE) room to maneuver in the face of a steepening recessionary outlook is severely restricted. Read more...

GBP/USD slips as US Dollar rebounds, traders await UK and US CPI data

GBP/USD tumbles during the North American session on Tuesday, down over 0.17% as the Greenback stages a recovery, hitting a three-day high, according to the US Dollar Index (DXY). At the time of writing, the pair trades at 1.3384 after reaching a high of 1.3417.

A scarce economic docket triggered by the government shutdown in the US keeps traders leaning on social media posts or comments by US President Donald Trump. In addition, the upcoming release of the latest Consumer Price Index (CPI) figures in the US on Friday keeps price action subdued. Meanwhile, in the UK, Public Sector Net Borrowing in September reached 20.24 billion pounds, lower than the median forecast of 20.5 billion pounds deficit expected by analysts. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.