GBP/USD news for August 1, 2026

The US dollar is selling off broadly following weak US growth data and suspected intervention in USDJPY, which is lending some support to GBPUSD. However, the British pound is underperforming as traders dial back expectations for further Bank of England rate hikes after a dovish hold. The conflicting pressures leave GBPUSD driven by relative monetary policy expectations and broader dollar sentiment.

Updated 19:49 UTC

How the day unfolded

1. 06:02 UTC

   The Bank of England held interest rates at 3.75%, citing inflation fears and the looming US-Iran conflict, which has prompted traders to reconsider BoE rate hike expectations and left the pound underperforming. Meanwhile, the dollar has come under broad pressure following USDJPY intervention, adding another layer of cross-currents for GBPUSD.

2. 15:02 UTC

   The Bank of England held rates at 3.75%, with analysts describing the move as a dovish hold that limits support for the pound, prompting traders to reconsider the prospects of further rate hikes. Meanwhile, the US dollar is showing signs of weakness, as highlighted by a bearish dollar index forecast and intervention-related pressure on USDJPY, which adds a counterbalancing dynamic for GBPUSD. These opposing forces leave the pair sensitive to central bank policy expectations and broader dollar sentiment.

Headlines (13)

• Bank of England holds interest rates at 3.75% as inflation fears mount
  www.theguardian.com · Jul 30, 11:19 UTC
• Minutes of the Meeting of the Court of Directors held on 4 June 2026
  www.bankofengland.co.uk · Jul 30, 13:00 UTC
• US-Iran war looms over Britain’s economy
  www.politico.eu · Jul 30, 14:19 UTC
• BoE holds rates at 3.75% as it waits to see impact of Iran war
  www.ft.com · Jul 30, 15:51 UTC
• Forex Today: US Dollar extends sell-off after weak US growth, Yen surges on suspected intervention
  www.fxstreet.com · Jul 30, 21:01 UTC
• US Dollar Index Price Forecast: Exposes to 99.00 on Double Top breakdown
  www.fxstreet.com · Jul 31, 06:54 UTC
• Bank of England: Dovish hold shapes Pound outlook – UOB
  www.fxstreet.com · Jul 31, 07:29 UTC
• The FX Trader: USD kicks off bear move as USDJPY intervention weighs.
  www.home.saxo · Jul 31, 07:46 UTC
• British Pound: Limited support from BoE policy – Commerzbank
  www.fxstreet.com · Jul 31, 08:43 UTC
• British Pound underperforms as traders reconsider BoE interest rate hike bets
  www.fxstreet.com · Jul 31, 09:37 UTC
• BIS Project Agorá settles $1 million in tokenized cross-border payment trials
  cointelegraph.com · Jul 31, 11:09 UTC
• CFTC Report: Bearish FX extremes deepen as cross-asset signals diverge
  www.fxstreet.com · 14:57 UTC
• The Bank of England Is Moving Away From Coal
  oilprice.com · 15:02 UTC

Scheduled events

As of 22:49 UTC

• 2026-08-03 — Final Manufacturing PMI · forecast 52.8 · GBP
• 2026-08-03 — Final Manufacturing PMI · forecast 53.8 · USD
• 2026-08-03 — ISM Manufacturing PMI · forecast 54.0 · USD
• 2026-08-03 — Construction Spending m/m · forecast 0.2% · USD
• 2026-08-03 — ISM Manufacturing Prices · forecast 70.0 · USD
• 2026-08-03 — Loan Officer Survey · USD
• 2026-08-03 — Omdia Total Vehicle Sales · forecast 16.3M · USD
• 2026-08-04 — Trade Balance · forecast -73.0B · USD