{
  "id": 16621077,
  "title": "British Pound slips as Fed decision, UK budget test Sterling bulls",
  "url": "https://urgent.news/2026/10/26/british-pound-slips-as-fed-decision-uk-budget-test-sterling-bulls",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-26T15:36:01.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/british-pound-slips-as-fed-decision-uk-budget-test-sterling-bulls-202610261536"
  },
  "original_language": "en",
  "account": "On Monday, the British Pound Sterling (GBP) experienced a slight decline against the US Dollar (USD), dropping by approximately 0.22%. Traders were closely watching the Federal Reserve’s upcoming monetary policy decision and the release of the UK’s Autumn Budget. The GBP/USD pair was trading at 1.3342 at the time of writing. Geopolitical events and advancements in artificial intelligence (AI) also influenced market movements, with Anthropic filing for an IPO and the Nasdaq surging higher. The US Dollar Index (DXY), which measures the dollar's value against six currencies, increased by 0.24% to 101.99, negatively impacting the GBP/USD pair. Speculation about a potential Federal Reserve rate hike during their meeting on November 2-3 diminished, with odds dropping to 9%, while the probability of a December hike decreased from nearly 90% to 83%. Energy prices were also on the decline as diplomats attempted to ease rising tensions in Iran. US President Donald Trump reassured the public that he would not attack Iran, dispelling rumors of a potential US-Israel attack. Corporate earnings from major cloud computing companies like Alphabet, Microsoft, and Amazon were anticipated to test the AI-led market rally and risk appetite. The UK government awaited Chancellor John Healey's budget announcement, with the focus on stabilizing the UK bond market amid concerns over significant government spending. The Bank of England was expected to raise rates on November 5, contingent on the release of solid economic data, indicating that if Federal Reserve Chair Kevin Warsh did not adopt a hawkish stance, the interest rate differential between the US and the UK would narrow, potentially leading to a GBP/USD recovery. The daily chart for GBP/USD displayed a bearish near-term outlook, trading below the 50-, 100-, and 200-day simple moving averages (SMAs) near 1.3400 and under key upward trend-line breaks at 1.3640 and 1.3820. Momentum showed signs of improvement, with the Relative Strength Index (14) nearing a neutral level, suggesting a potential easing of downside pressure, but price remains restrained by overhead structures. A daily close above the downward-sloping trend-line around 1.3397 could help alleviate the bearish bias and pave the way for the 1.3640 and 1.3820 levels. Conversely, a sustained drop below the 1.3260 trend line might reignite selling pressure, exposing lower levels in the broader range.",
  "summary": "The Pound Sterling loses some ground against the US Dollar, drifting lower by some 0.22% as traders wait for the release of the Federal Reserve’s monetary policy decision on Tuesday and Wednesday and also brace for the release of the UK’s Autumn Budget. The GBP/USD trades at 1.3342.",
  "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."
}