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GBP holds near 1.35 as dollar rebounds after intervention pressure

GBP/USD was around 1.3458 and the dollar headed for one of its worst weeks since early April 2026, after US data softened rate hike odds for September.

Reported · Written up by our desk · Major Pairs

Pound Sterling slipped modestly on Friday, easing about 0.02% as the US dollar rebounded after a prior intervention period weighed on the dollar earlier in the week. In spot trading, GBP/USD was quoted near 1.3458, virtually unchanged, putting the pair around the 1.35 level.

FXStreet said the dollar is set for a steep weekly decline, with losses of more than 1.3% on the way, after US economic releases shifted expectations. The University of Michigan’s consumer sentiment improved from a preliminary 54.4 to 55.2, while one-year inflation expectations were steady at 4.2% and five-year expectations stayed at 3.3%.

The outlet also pointed to softer growth and inflation signals in the US. The economy expanded more slowly than expected in the second quarter, and the Core PCE, the Fed’s preferred inflation measure, fell 0.1% in June, a combination that trimmed the chances of a September rate hike, with markets pricing about 23 basis points of tightening over the remainder of the year.

In the UK, the Bank of England held rates unchanged but left scope for future hikes amid uncertainty tied to the US-Iran conflict, while money markets still expect a 25-basis-point rate increase by year end, according to Prime Terminal data. FXStreet added that technical levels remain supportive, with spot holding above moving averages around 1.3365 and support seen in the nearby band around 1.3375.

Latest closeGBP/USD 1.349 ▲0.9%

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