The British Pound Weakens
The British Pound weakens against major currencies, especially the Japanese Yen. The GBP/USD sees a slight increase to 1.3070 as the US Dollar’s upward movement pauses. Recent US data, including 42,000 new jobs in October and an ISM Services PMI of 52.4, supports the US Dollar. The likelihood of a Federal Reserve rate cut in December drops from 94.4% to 62.5%. The GBP/USD stays around 1.3085, close to a six-month low of about 1.3000. The trend is downward, below the 200-day average at 1.3263. The 14-day Relative Strength Index falls below 30, indicating a downward trend. Key support is near April’s 1.2700, while the October 28 high at 1.3370 acts as resistance.BoE Interest Rate Decisions
BoE interest rate decisions, typically eight per year, affect Pound Sterling based on their inflation outlook. Today’s Bank of England decision signals an expectation of a weaker Pound Sterling. The vote for a rate cut was closer than anticipated, with four out of nine members in favor. This change indicates that the easiest path for Sterling may be downward in the coming weeks. This shift by the BoE is backed by recent data showing slowing inflation and economic activity. The third-quarter GDP figures revealed that the UK economy grew by only 0.1%, while the latest data from mid-October 2025 showed the inflation rate decreased to 4.2%. These numbers give the central bank more ability to focus on growth rather than controlling inflation, supporting the case for lower rates. We should also be preparing for further Sterling weakness ahead of the Autumn Budget later this month. Expected tax increases from Chancellor Rachel Reeves will likely dampen consumer spending and business investments. This economic tightening contradicts what the economy needs, adding more downward pressure on the Pound. The argument for shorting GBP is strengthened when considering the United States, where the economic outlook is better. The recent US Non-Farm Payrolls report showed a solid addition of 195,000 jobs, leading the Federal Reserve to take a more cautious approach. This policy difference between a dovish BoE and a steady Fed makes shorting the GBP/USD pair particularly appealing.
เริ่มซื้อขายทันที – คลิกที่นี่ เพื่อสร้างบัญชีจริงของ VT Markets
