Bearish
GBP/USD drops to 1.3185 as US core CPI rises 2.6%, surpassing expectations.
The GBP/USD exchange rate declined to 1.3185 following the release of the US September Consumer Price Index (CPI), which showed a 2.6% increase, exceeding the anticipated 2.5%. This stronger-than-expected inflation data bolstered the US dollar, overshadowing the Bank of England's anticipated rate hike.
Key points
- US core CPI for September rises 2.6%, exceeding forecasts, strengthening the US dollar.
- Markets price a 90% chance of a Bank of England rate hike to 4.00% on November 5.
- UK 10-year gilt yields reach their highest level since 2007, indicating market expectations of higher interest rates.
Sources
- Pound Drops to 1.3185 as 5.278% Treasury Yields Outweigh a 3.75% Bank Rate Set to Rise — 1.3150 Floor Guards 1.3100TradingNews · October 14, 2026
- Pound To Dollar Price News, Forecast: IMF Upgrade Keeps Sterling FirmExchangeRates.org.uk · October 14, 2026
- Pound To Dollar Price News, Forecast: 1.32 Support Remains In FocusExchangeRates.org.uk · October 13, 2026
AI-generated from public news sources. Not financial advice.
