GBP/USD softens to near 1.3750 as US Senate advances spending deal to avoid shutdown
The GBP/USD pair attracts some sellers near 1.3760 during the early European session on Friday. The US Dollar (USD) edges higher against the Pound Sterling (GBP) after US President Donald Trump and Senate Democrats struck a deal to avoid a US government shutdown. Traders will keep an eye on the US Producer Price Index (PPI) data later on Friday.
The US Senate could vote as soon as Thursday night to approve a government funding package after Democrats reached a deal with Trump to strip out the full-year spending bill for the Department of Homeland Security (DHS). The Greenback gains ground against the GBP in an immediate reaction to this headline. Read more…
GBP/USD slides below 1.3780 as Fed hold lifts the Dollar
GBP/USD tumbles during the North American session on Thursday after the US Federal Reserve (Fed) held rates unchanged and revealed a stabilization of the jobs market. At the time of writing, the pair trades at 1.3779, down 0.18%. On an abrupt move, the US Dollar Index (DXY), which tracks the performance of the buck’s value against six currencies, is up 0.65% to 96.40, a headwind for Sterling.
The US Dollar’s gains and the fall of US equities sent Gold, Silver and risk assets like Bitcoin and Ethereum plunging across the board. Aside from this, on Wednesday, the Fed held rates unchanged at the 3.50%-3.75% range to assess the impact of 75 basis points of easing during the second half of 2026. The decision was by majority on a 10-2 vote split, with Governors Waller and Miran opting for a quarter of a percentage point cut. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-weakens-to-around-13760-early-european-session-202601300508
