The GBP/USD rate dipped in North American trading on Tuesday, falling over 0.17% and marking a three-day high, as the US dollar began to stabilize. At the moment, the pair is at 1.3384, following a peak of 1.3417 earlier.
Pound dips below 1.34 as UK fiscal tightening looms
In the United States, traders are closely watching President Donald Trump’s social media activity, especially as economic data linked to the government shutdown is limited. Also, the latest Consumer Price Index (CPI) figures are set to be published on Friday, but there hasn’t been much volatility in prices recently.
On the UK side, net public sector borrowing reached £20.24 billion in September, which was slightly better than analysts’ median projection of a £20.5 billion shortfall.
Prime Minister Rachel Reeves has indicated intentions to raise taxes and cut expenditures to achieve fiscal objectives.
She has also expressed a need to keep investors content, given the significant increase in Britain’s borrowing costs. Last week, the Prime Minister mentioned wanting a larger fiscal buffer to better handle global market fluctuations, noting that adjustments in the November 26 Budget would necessitate some compromises.
Moreover, traders are awaiting UK inflation data set for release on Wednesday. Some forecasts suggest the CPI could increase from 3.8% to 4% in September, but if it deviates from expectations, the Bank of England may consider adjusting its easing policies.
GBP/USD Price Chart – Daily
This week’s British pound price
The table below outlines the percentage changes of the British Pound (GBP) against key currencies this week. The GBP has performed strongest against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.47% | 0.36% | 0.83% | -0.02% | -0.12% | -0.16% | 0.41% | |
| EUR | -0.47% | -0.11% | 0.46% | -0.49% | -0.49% | -0.69% | -0.04% | |
| GBP | -0.36% | 0.11% | 0.30% | -0.38% | -0.38% | -0.58% | 0.05% | |
| JPY | -0.83% | -0.46% | -0.30% | -0.91% | -0.99% | -1.08% | -0.52% | |
| CAD | 0.02% | 0.49% | 0.38% | 0.91% | -0.06% | -0.21% | 0.43% | |
| AUD | 0.12% | 0.49% | 0.38% | 0.99% | 0.06% | -0.21% | 0.40% | |
| NZD | 0.16% | 0.69% | 0.58% | 1.08% | 0.21% | 0.21% | 0.64% | |
| CHF | -0.41% | 0.04% | -0.05% | 0.52% | -0.43% | -0.40% | -0.64% |
The heat map illustrates the percentage changes among major currencies. The base currency is chosen from the left column, while the quote currency comes from the top row. For instance, selecting British Pounds from the left and moving horizontally to US Dollars shows the percentage change in the respective box.
