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GBP/USD news for August 29, 2026

The dollar gained ground after Fed Chair Warsh signaled that inflation progress is insufficient and hinted at further rate hikes, which weighs on GBPUSD. Additionally, month-end flows are seen as mildly supportive for the dollar per BofA. Meanwhile, the Bank of England may respond to high energy prices by year-end, but that has not offset the dollar's strength.

How the day unfolded

  1. The British Pound is hovering near a weekly low against a firmer US Dollar, as expectations of Federal Reserve rate hikes support the greenback. Comments from Fed officials and a speech by Warsh have boosted bond yields, reinforcing USD strength. Meanwhile, markets are also watching the Bank of England's potential response to high energy prices, which could impact the Pound.

  2. The British Pound remains under pressure against a firmer US Dollar, as markets focus on Federal Reserve officials' comments hinting at potential rate hikes due to insufficient inflation progress. Meanwhile, expectations that the Bank of England may respond to high energy prices by year-end are also in play, while the pound hovers near weekly lows below 1.3600.

  3. The British Pound is under pressure as the US Dollar firms on growing bets of Federal Reserve rate hikes after Chair Warsh signaled insufficient inflation progress. Meanwhile, the Bank of England is expected to react to high energy prices before year-end, keeping attention on monetary policy divergence. These factors are driving GBPUSD movement in the current session.

  4. Fed Chair Warsh's hawkish remarks, citing insufficient inflation progress and hinting at possible rate hikes, boosted US bond yields and the US dollar. This strength weighed on GBPUSD, pushing the pair lower as the greenback gained broadly. Market attention also remains on the Bank of England, which may respond to high energy prices by the end of the year.

  5. GBPUSD is being driven by a stronger US dollar after Fed Chair Warsh indicated inflation progress is insufficient and hinted at possible rate hikes, which has lifted Treasury yields and weighed on the pair. Meanwhile, expectations that the Bank of England may act on high energy prices by year-end could influence sterling, but market attention remains on the dollar's momentum from the Fed's hawkish stance.

  6. The dollar strengthened after Federal Reserve Chair Warsh signalled that inflation progress remains insufficient, hinting at further rate hikes, which boosted Treasury yields. Meanwhile, the Bank of England signalled it may respond to high energy prices with policy action by year-end, offering some support for sterling. Month-end dollar buying was also noted as mildly supportive for the greenback.

  7. Federal Reserve Chair Warsh's remarks that inflation progress is insufficient, along with hints at further rate hikes, have boosted US bond yields and lifted the dollar. This has pressured GBPUSD, while markets also monitor the Bank of England's expected response to high energy prices. Month-end dollar demand could add to the move.

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As of 21:05 UTC

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Not investment advice. For informational purposes only.