The Pound Sterling registers gains versus the US Dollar after the Bank of England decided to hold rates unchanged, in a 6-3 vote, while suspected intervention to propel the Japanese Yen weakened the Greenback against most G8 currencies.
The GBP/USD trades at !.3430, up 0.40%
GBP/USD climbs as BoE dissenters back hikes; suspected Yen intervention weakens the Dollar The foreign exchange markets are experiencing a volatile session as the USD/JPY pair tumbles by over 400 pips so far today. Consequently, the US Dollar Index (DXY), which tracks the performance of the American currency against six other currencies, collapses by over 0.60%, reaching a 30-day low. US data revealed that the economy grew below estimates of 2.1% in Q2 2026, at 1.5%, aligning with the Atlanta Fed’s GDP Now.
At the same time, the Fed’s favourite inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, expanded as expected, at 3.7% in June, down from May 4.1% jump. However, the dip in US Core PCE is projected to be short-lived following the resumption of hostilities in the Middle East. The Fed’s decision was widely expected by investors, but having three dissenters, suggested that the board is tilted more hawkish than expected.