The British Pound (GBP) climbed to a weekly high near 1.3480 against the US Dollar (USD) on Wednesday, as the Greenback remained under pressure following the shutdown of the US federal government. The pair extended its upward momentum for a fourth straight session during the European trading hours.
At the time of writing, the US Dollar Index (DXY)—which measures the Dollar’s performance against a basket of major currencies—was down 0.25%, trading near 97.50.
US Shutdown and Fed Outlook Dampen Dollar Sentiment
The US government officially shut down after midnight Tuesday when lawmakers failed to reach an agreement on a temporary funding bill. The political deadlock is expected to impact the release of crucial economic data, including Friday’s Nonfarm Payrolls (NFP) report.
The shutdown has increased uncertainty over the Federal Reserve’s monetary policy path, especially if key data releases are delayed. Markets are now watching closely for the ADP Employment Change report, expected later today, which may serve as the main labor market indicator for the week.
BoE Officials Split on Interest Rate Outlook
Meanwhile, the British Pound showed mixed performance against other major currencies as Bank of England (BoE) policymakers continue to express diverging views on inflation and interest rates:
- BoE Deputy Governor Clare Lombardelli warned against underestimating inflation, arguing price shocks could have long-lasting effects.
- Catherine Mann, another MPC member, echoed concerns about persistent inflation but left room for future rate cuts.
- In contrast, BoE Deputy Governor Sarah Breeden called for a more dovish stance, citing risks of overtightening that could pull inflation below the 2% target.
These differing views signal growing debate within the BoE about the pace and direction of future rate moves.
GBP/USD Technical Outlook
- GBP/USD is trading near the 20-day Exponential Moving Average (EMA) around 1.3480.
- The 14-day Relative Strength Index (RSI) has bounced from 40.00 but remains within the neutral 40–60 range, suggesting consolidation.
- Key support lies at the August 1 low of 1.3140, while resistance is seen at the September 17 high of 1.3726.
Pound Sterling Performance Today
| Base\Quote | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| USD | — | +0.02% | -0.16% | -0.47% | +0.06% | +0.01% | -0.31% | +0.05% |
| EUR | -0.02% | — | -0.16% | -0.48% | +0.04% | +0.02% | -0.30% | +0.02% |
| GBP | +0.16% | +0.16% | — | -0.30% | +0.21% | +0.19% | -0.13% | +0.20% |
| JPY | +0.47% | +0.48% | +0.30% | — | +0.54% | +0.46% | +0.39% | +0.60% |
| CAD | -0.06% | -0.04% | -0.21% | -0.54% | — | -0.04% | -0.35% | -0.01% |
| AUD | -0.01% | -0.02% | -0.19% | -0.46% | +0.04% | — | -0.32% | +0.01% |
| NZD | +0.31% | +0.30% | +0.13% | -0.39% | +0.35% | +0.32% | — | +0.34% |
| CHF | -0.05% | -0.02% | -0.20% | -0.60% | +0.01% | -0.01% | -0.34% | — |
The Pound was strongest today against the Canadian Dollar and showed resilience overall despite mixed signals from policymakers.