GBP/USD Recovers on Stronger UK Services Data Amid Volatile Markets
The GBP/USD exchange rate experienced volatility on Monday, October 5, 2026, as shifting market sentiment influenced the currency pair. At the time of writing, GBP/USD was trading around $1.3226, slightly lower on the day but still above its earlier low of $1.3192.
The US Dollar started the week stronger, benefiting from a risk-averse market mood driven by concerns over the Middle East crisis and disruptions in shipping through the Strait of Hormuz. However, the Dollar’s gains were short-lived as markets reacted positively to revised Federal Reserve interest rate expectations following weak US payrolls data from Friday.
The Pound initially weakened against the Dollar as investors sought safer assets but later recovered losses. Support for the Pound came from an upward revision in the UK’s final services PMI for September, which was adjusted to 52.1 from the preliminary 51.7, exceeding expectations.
Looking ahead, Federal Reserve officials Michelle Bowman and John Williams are set to speak on Tuesday. Their remarks could impact the Dollar if they suggest opposition to an interest rate hike this month. Meanwhile, the Pound faces a quiet UK data calendar, leaving risk appetite as a key factor in determining the GBP/USD exchange rate.