Sterling climbed above 1.3350 dollars on Friday, gaining more than 0.61 percent against the US dollar. The move followed remarks from Federal Reserve Chair Kevin Warsh, who gave no forward guidance on interest rates.
Warsh spoke about the global economy, the AI boom and yields at an IMF meeting in Bangkok. He said the Fed had made clear it would deliver price stability, adding that it had removed a dose of accommodation about a month ago. The article does not give the date of those remarks.
Rate expectations shift on both sides
Prime Terminal data put the chance of a 25-basis-point hike at the October meeting at 15 percent. US inflation figures released earlier in the week supported that view.
Industrial production data also stood out. US output rose 0.7 percent month on month in September, against an estimate of 0.4 percent and 0.1 percent in the prior month.
Bank of England hike bets build
Expectations for the Bank of England also grew. A Reuters poll of 63 economists found 54 expecting a 25-basis-point increase to Bank Rate in November.
BoE Governor Andrew Bailey said second-round inflation signs were quite subdued. He added that the economy had proved more resilient than the bank expected.
Technical levels and the week ahead
At the time of writing, GBP/USD was at 1.3340. Resistance sits near 1.3418 and 1.3413, while initial support is seen around 1.3282. By our market data, GBP/USD stood at 1.3328 as of 03:55 GMT on 17 October 2026.
Next week brings UK Retail Sales, jobs and inflation data. Bloomberg reported that UK Finance Minister Healey could raise taxes on banks ahead of the Autumn Budget.
Source: Bank of England | Data: Swissquote
