• The Pound Sterling trades broadly calm against its major peers at the start of a week featuring the Fed interest-rate decision.
• Investors expect both the Fed and the BoE to cut interest rates by 25 bps this month.
• The Fed might call for a pause after a rate cut on Wednesday as inflation remains well above the 2% target.

The Pound Sterling (GBP) trades slightly lower against its major currency peers at the start of the week, hovering at around 1.3320 against the US Dollar (USD). In a week in which the United Kingdom (UK) economic calendar is light, the British currency is expected to be influenced by global events and market expectations for the Bank of England’s (BoE) monetary policy outlook.

Traders are confident that the BoE will cut interest rates in the policy meeting next week amid weak UK labor market conditions and signs of a slowdown in inflation . The job market data for the three months ending in September showed that the Unemployment Rate rose to 5%. Meanwhile, the headline Consumer Price Index (CPI) report for October showed that inflation stood at 3.6% on an annual basis, the lowest level in four months.

For more cues on the monetary policy outlook, investors will focus on the speech by Bank of England (BoE) external member Alan Taylor, which is scheduled at 14:30 GMT.
 

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the New Zealand Dollar.

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
 

Daily digest market movers: Fed looks set to cut interest rates on Wednesday

• The Pound Sterling consolidates against the US Dollar (USD) around 1.3320 during the European trading session on Monday. The GBP/USD pair turns sideways after posting an over a month high at around 1.3385 last week, while the US Dollar trades cautiously ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.
• At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, struggles to hold its over five-week low of 98.75 posted on Thursday.
• The CME FedWatch tool shows that the probability of the Fed cutting interest rates by 25 basis points (bps) to 3.50%-3.75% on Wednesday's policy meeting is 87%.
• The major trigger behind the firm Fed dovish expectations is weakening job market conditions. In late November, New York Fed Bank President John Williams also warned of slower economic growth and weak labour demand, while supporting the need for more interest-rate cuts. "Economic growth has slowed and the labor market gradually cooled," Williams said, adding that "there is room for a further adjustment in the near term.”
• With traders remaining confident that the Fed will cut interest rates on Wednesday, the major trigger for the US Dollar will be guidance on the monetary policy outlook. Federal Open Market Committee (FOMC) members are expected to support holding interest rates steady in early 2026 as inflationary pressures have remained well above the 2% target for months.
   

Technical Analysis: GBP/USD sees more upside above 1.3400
 

(Click on image to enlarge)

The Pound Sterling trades flat around 1.3320 against the US Dollar on Monday. The pair holds above a rising 20-day Exponential Moving Average (EMA) at 1.3227, maintaining a positive near-term bias. The 20-day EMA has sloped higher in recent sessions, and dips remain shallow.

The 14-day Relative Strength Index (RSI) at around 60 reflects bullish momentum.

Momentum remains supportive as price stays above the rising 20-day EMA. A daily close above the 50% Fibonacci retracement at 1.3402 would reinforce the bullish tone and open room towards the October 17 high of 1.3471. Conversely, failure to breach that barrier would keep the pair consolidating, with pullbacks leaning toward the 38.2% Fibonacci area and trend support at 1.3310.

More By This Author:

Pound Sterling Trades Stably Ahead Of Fed's Monetary Policy
Pound Sterling Outperforms US Dollar As Fed Seems To Cut Rates Next Week
Pound Sterling Sees More Upside On UK Budget-Relief Rally, Upwardly Revised PMI