{
  "id": 14925076,
  "title": "Sterling today: Pound set to snap 7-week losing run as dollar slips on AI fears",
  "url": "https://urgent.news/2026/10/16/sterling-today-pound-set-to-snap-7-week-losing-run-as-dollar-slips-on",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-16T09:54:01.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/forex-news/sterling-today-pound-set-to-snap-7week-losing-run-as-dollar-slips-on-ai-fears-4953534"
  },
  "original_language": "en",
  "account": "On Friday, the pound sterling surged as concerns over U.S. artificial intelligence-linked stocks prompted a dollar slump. The pound climbed 0.43% against the dollar, reaching 1.3331, while the euro also rose by 0.29% to 1.1253. Analysts predict the pound will continue its weekly ascent of around 0.7%, potentially ending a seven-week decline and achieving its best close since September 22.\n\nChris Turner, global head of markets at ING, attributes this to investors utilizing long-dated Treasuries as a buffer against potential AI trade corrections. Despite ongoing inflationary data, the long-end of the U.S. Treasury market has shown a recovery. The upcoming U.S. September producer prices and import prices are expected to reinforce this trend, with import prices projected near 8% year-on-year, the highest since summer 2022.\n\nThe pound's upward movement appears to be driven by broad dollar weakness rather than UK-specific factors, as the euro rose alongside it. Meanwhile, British economic data indicated a strong August performance, with a notable increase in computer programming jobs, suggesting AI's positive impact on growth. However, the fiscal outlook poses a risk, with Chancellor John Healey expected to introduce a 8% tax on banks during his Oct 28 budget, generating an estimated annual revenue of £2.25 billion.\n\nHigher gilt yields and potential halving of the £24 billion fiscal cushion set in March could further impact the pound. Turner anticipates the Euro/Dollar exchange rate to enter a consolidation phase, potentially reaching 1.1340/50. The Federal Reserve's cautious approach to rate hikes is a key factor, with the dollar expected to struggle in breaking above 102.40/50. A further U.S. equity decline might favor the Swiss franc over the euro.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}