GBP/USD Pulls Back As Bull Run Hesitates

GBP/USD fell below the 1.3350 level after a strong rebound. Despite a decline in the US Dollar Index, GBP/USD gains were limited. The Fed's interest rate decision on December 10 is crucial, with a 90% chance of a rate cut expected. Upcoming PCE inflation data may impact this decision. The US labor market shows signs of weakening, influencing rate cut expectations.

The British pound rose 1% against the US dollar, marking the largest intraday gain since May, reported at 1.3347

Sterling Could Fall if U.K. Treasury Chief Reeves Is Pressured to Resign

Sterling rose to a one-month high against the dollar, but is at risk of falling if there are indications U.K. Treasury chief Rachel Reeves could lose her job after last week’s budget, Ebury said.

GBP/USD Steadies Near 1.3200 As Traders Bet On Dual Fed–BoE Dovish Pivot

GBP/USD remains steady near 1.3200 as traders anticipate dovish pivots from both the Federal Reserve and the Bank of England. The US Dollar shows minimal gains despite weak economic data, increasing expectations for a Fed rate cut in December. Similarly, the BoE is expected to cut rates, with a 90% probability. Technical outlook suggests GBP/USD is capped by the 50-day SMA at 1.3267, with key support at 1.3200.

UK fund managers plan to raise FX hedges on volatile pound, report says

UK fund managers plan to increase FX hedging in 2026 due to pound volatility, with 48% boosting hedge ratios and 46% extending hedge lengths. Hedging costs have risen 69%, and AI adoption in FX processes is growing, with 25% of funds using it. Concerns include U.S. tariffs and policy changes affecting currency values.