British Pound Hits 15-week Low

GBPUSD decreased to 1.32, the lowest since June 2026. Over the past 4 weeks, British Pound US Dollar lost 2.18%, and in the last 12 months, it decreased 1.64%.

Sterling fell below $1.32, returning to levels last seen in late June, as stronger-than-expected US inflation reduced expectations of the Federal Reserve holding rates steady in October. US inflation rose to 3.7% year-on-year in September, above forecasts of 3.6%, while core inflation also exceeded expectations. Meanwhile, investors assessed comments from Bank of England policymakers, with Chief Economist Huw Pill expressing skepticism about market expectations for four rate hikes over the coming year and arguing that stronger evidence was needed to justify a larger increase despite the need to address the energy shock triggered by the Iran war. Governor Andrew Bailey, however, warned that a rate hike would become harder to avoid the longer the shock persists. Markets are pricing in a near-100% chance of the BoE delivering its first rate hike in more than three years in November. However, expectations for four 25-basis-point increases by June 2027 have eased slightly.

Sterling stabilized above $1.325, recovering from recent three-month lows as investors digested remarks from Bank of England policymakers and awaited US inflation data for further clues on the Federal Reserve’s rate path. BoE Chief Economist Huw Pill, one of the bank’s most hawkish policymakers, expressed skepticism about market expectations for four rate hikes over the coming year. While arguing that the BoE should have acted sooner to address the energy shock triggered by the Iran war, he said stronger evidence was needed to justify a larger rate increase. Governor Andrew Bailey, meanwhile, warned that a rate hike would become increasingly difficult to avoid the longer the energy shock persists. Markets are pricing in a near-100% chance of the MPC delivering its first rate hike in more than three years at its November meeting. Traders had also fully priced in four 25-basis-point increases by June 2027, but have since slightly scaled back their expectations.