Sterling Slides to Mid-October Lows

2026-11-13 10:42 By Joana Ferreira 1 min. read

Sterling traded around $1.322, its weakest level since mid-October, as the US dollar remained supported by growing expectations of further Federal Reserve tightening.

Stronger-than-expected US consumer price data released on Tuesday reinforced expectations of another Fed rate hike in December, while raising the possibility of a larger 50-basis-point increase.

In the UK, investors also increased bets on further Bank of England tightening following stronger-than-expected data showing GDP growth of 0.2% in September.

The economy has remained relatively resilient this year, supported in part by AI-related investment and productivity gains, despite the energy supply shock stemming from conflicts in the Middle East and Ukraine.

According to LSEG data, markets now price in an over 80% probability of a BoE rate hike in December, up from around 50% at the start of the week.

Investors are also fully pricing in three additional rate increases by mid-2027, following the hike delivered in November.



News Stream
Sterling Slides to Mid-October Lows
Sterling traded around $1.322, its weakest level since mid-October, as the US dollar remained supported by growing expectations of further Federal Reserve tightening. Stronger-than-expected US consumer price data released on Tuesday reinforced expectations of another Fed rate hike in December, while raising the possibility of a larger 50-basis-point increase. In the UK, investors also increased bets on further Bank of England tightening following stronger-than-expected data showing GDP growth of 0.2% in September. The economy has remained relatively resilient this year, supported in part by AI-related investment and productivity gains, despite the energy supply shock stemming from conflicts in the Middle East and Ukraine. According to LSEG data, markets now price in an over 80% probability of a BoE rate hike in December, up from around 50% at the start of the week. Investors are also fully pricing in three additional rate increases by mid-2027, following the hike delivered in November.
2026-11-13
Sterling Remains Under Pressure Despite Strong UK GDP
Sterling remained under pressure, trading below the $1.33 level and hovering near its lowest point since mid-October, as investors digested stronger-than-expected UK economic data, while the US dollar continued to draw support from expectations of further Federal Reserve tightening. Oil prices also stabilized, with Brent crude recovering momentum after recent steep declines. ONS data showed the UK economy grew by 0.7% in the third quarter, up from 0.5% in the previous quarter and in line with expectations. Annual growth accelerated to 1.9% from 1.4%, while September GDP rose 0.2%, exceeding forecasts. The resilient data strengthened expectations of further Bank of England tightening, with markets pricing in another rate hike before year-end and a further increase by March. In the US, stronger-than-expected inflation and hawkish Fed commentary reinforced expectations of a December rate hike, while raising the possibility of a more aggressive 50-basis-point increase.
2026-11-12
British Pound Hits 4-week Low
GBPUSD decreased to 1.33, the lowest since October 2026. Over the past 4 weeks, British Pound US Dollar gained 0.06%, and in the last 12 months, it increased 0.55%.
2026-11-12