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Pound rises versus dollar as BoE hike bets grow ahead of US CPI

GBP/USD was last at 1.3244, up 0.28%, with the dollar pressured by mixed US data including ADP and a small gain in existing home sales.

Reported · Written up by our desk · Major Pairs

The British pound strengthened against the US dollar on Tuesday, gaining 0.28% as investors priced in a potential Bank of England rate hike at its November meeting, FXStreet reported. The GBP/USD pair was last trading at 1.3244 while markets prepared for the release of US inflation data.

FXStreet said improved risk sentiment weighed on the greenback, even as US economic indicators came in mixed. An ADP Employment Change four-week average fell from 25.25K to 24.75K, while Existing Home Sales rose from 3.98 million to 3.99 million, above the 3.96 million forecast, and increased 1.5% month over month in September.

In the US policy backdrop, FXStreet noted comments from Federal Reserve officials. Chicago Fed President Austan Goolsbee said the jobs market is very stable and growth has been solid, adding that if inflation remains persistent the Fed would have to respond, while Fed Governor Christopher Waller discussed AI's impact on US yields and said inflation expectations are well anchored.

FXStreet also cited guidance from the International Monetary Fund. The IMF said it expects the UK economy to grow 1.3% in 2026, up from a prior forecast of 0.5%, while warning on outlook risks.

Latest closeGBP/USD 1.323 ▼0.3%

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