GBP/USD advanced to multi-week highs, leaving the pound up meaningfully in August as global rate expectations shifted.
Softer US inflation and labour data increased the likelihood of a Federal Reserve rate cut in September, weighing on the dollar, while a stronger-than-expected UK GDP print prompted investors to trim aggressive BoE easing bets for the remainder of 2025.
Traders also cited supportive risk sentiment and a modest uptick in gilt yields as factors underpinning sterling.
For UK importers, a firmer currency eases near-term cost pressures, while for exporters it can dent competitiveness, particularly in price-sensitive markets.
For households, a stronger pound can dampen pass-through inflation via energy and goods, helping the BoE’s disinflation effort at the margin.
Foreign-exchange strategists caution that sterling’s path will hinge on incoming UK inflation and wage data, which remain volatile, and on how the MPC frames risks after its narrow August cut.
With markets still discounting another 25bp reduction by early 2026, any upside surprises on prices could extend sterling’s gains, while a negative growth shock or dovish guidance would likely reverse them.
In the meantime, volatility around major geopolitics-linked headlines could inject swings into GBP crosses.
A new survey by the Confederation of British Industry (CBI) revealed that confidence in the UK's services sector has dropped due to persistent cost pressures and weak demand.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
UK inflation has unexpectedly accelerated to 3.8% in July, primarily driven by rising food, fuel, and airfare costs.
Rate cuts by more than 20 banks following the BoE move risk pushing savings returns below inflation.
A US lawmaker’s call for a probe into Standard Chartered pressured London-listed financials late in the week.
The FTSE 100 briefly set a fresh intraday high on Friday and looked set for weekly gains, even as defence stocks lagged.
London’s blue-chip index set a record close as defence and financial stocks advanced after UK growth surprised on the upside.
Economists said the Q2 GDP surprise reduces pressure for rapid follow-up cuts after August’s split decision.
The UK economy expanded by 0.3% in Q2 2025, outpacing expectations and easing recession fears.
Surveyors reported improved buyer enquiries and stabilising prices in July, hinting that BoE easing is feeding through.
UK equities advanced as softer US inflation buoyed risk assets, though domestically focused names underperformed.
UK stocks hit new highs as investors shake off trade worries; inflation and unemployment rise.
FX markets eyed UK jobs and pay data after the BoE’s split cut, with sterling consolidating recent gains.
The Bank of England reduced rates by 25bp to 4.0%, with a closely divided MPC underscoring policy uncertainty.
BoE reduces rates as UK inflation spikes to 3.5%, signaling confidence in falling prices ahead.
Business leader optimism in the UK economy has fallen to its lowest level since records began in 2016.
Londoners are purchasing the lowest proportion of houses outside the capital in over a decade due to stalling local prices and the shift back to office working.
FTSE 100 property developer Berkeley Group has warned of a housing slowdown in London, forecasting further decline unless the government addresses regulatory and tax hurdles.
Amazon offers 45% discount on L'Oreal Paris Laser Renew Anti-Ageing Triple Action Eye Cream.
UK borrowing costs for 30-year debt reached 5.72%, a 27-year high, raising fears of economic decline.
Poundland plans to close up to 68 stores in 2025 following financial difficulties and restructuring.
Chancellor Rachel Reeves announced the autumn budget for November 26, aiming to address a £30 billion deficit with growth measures.
Financial expert Martin Lewis has issued a strong warning against criminals who use his name and deepfake technology in 'disgraceful' online adverts to scam vulnerable people, after a woman's husband lost thousands of pounds.
The Powerball jackpot has soared to an estimated $1.3 billion, the fifth-largest in the lottery's history, after no winning ticket was sold in the latest drawing, marking the 41st consecutive drawing without a winner.
The UK's long-term borrowing costs have reached a 27-year high, fueling speculation about the government's economic credibility and the future of Chancellor Rachel Reeves following a significant government reshuffle.
Experts caution that Premium Bonds winnings may lead to unexpected tax bills depending on how they’re used.
McVitie’s introduces a new caramel-flavoured Penguin biscuit available in major UK supermarkets just in time for autumn.
Despite a wider trend of decreasing car insurance premiums in the UK, a new report indicates that prices for drivers under the age of 25 have seen a recent increase.
A major government reshuffle has fueled speculation about the future of Chancellor Rachel Reeves as the UK's long-term borrowing costs reach a 27-year high amidst broader European economic uncertainty.
The Powerball jackpot has skyrocketed to an estimated $1.3 billion after no one won the top prize in the latest drawing, marking the 41st consecutive drawing without a winner and setting up the fifth-largest jackpot in the lottery's history.
