Forex
GBP/USD Exchange Rate Hits Eight-Day Low Amid Fed Expectations
The GBP/USD exchange rate hit an eight-day low on Thursday as market expectations for central bank interest rates shifted. The US Dollar (USD) remained strong, with inflation figures from Wednesday prompting markets to revise their expectations for a Federal Reserve interest rate hike.
The latest core PCE price index showed that prices remain above target, reinforcing expectations of a Fed rate increase in the coming months. This supported the USD into Thursday's session.
The Pound (GBP) came under pressure as markets pushed back their expectations for a Bank of England interest rate hike from late 2026 to 2027, following a recent fall in global oil prices and concerns about the UK's rising cost of living.