Sterling gained against the dollar Monday as firmer market sentiment weighed on the U.S. currency, while traders looked to Tuesday’s U.S. inflation report for an updated reading on price pressures.
Reuters reported sterling at $1.3411, up 0.5%, and the dollar index at 101.88, down 0.3%. FXStreet quoted GBP/USD at $1.3420 at 6:00:51 a.m. ET (11:00:51 GMT) Monday, after the pair had fallen below $1.3350 Friday, Nov. 6.
The October Consumer Price Index (CPI) report is scheduled for Tuesday, Nov. 10, at 8:30 a.m. ET, according to the U.S. Bureau of Labor Statistics (BLS). Reuters cited a forecast for consumer prices to rise 0.3% from September; the official October reading is pending.
The BLS reported nonfarm payroll employment increased by 165,000 in October. Unemployment fell to 4.1% from 4.2% in September.
Reuters said the dollar’s Nov. 6 advance was its largest in about half a year. It linked the move to jobs figures that strengthened expectations for interest rates and declines in AI shares that pushed investors toward safer assets. The outlet attributed Monday’s retreat to improving market sentiment.
Bank Rate reached 4% after a 0.25-point increase approved by the Bank of England’s Monetary Policy Committee on Nov. 4. The vote was 8-1, with the sole dissenter seeking 4.25% through a half-point move.
The Bank of England said UK inflation was 3.5% in September and was expected to rise to about 5% by mid-2027, with higher energy prices adding to household and business costs. It said policy decisions would weigh evidence on wages, pricing and economic slack. The bank’s next policy decision is scheduled for Dec. 17.
