NewsTradingSentimentEventsCommunityBriefing
Sign in
Markets LIVE

Pound Sterling Retraces Gains to 1.3356 as Oil Shock Hits

By Markets Desk · 2026-09-20 · Updated 2026-09-20 02:41 UTC
A stack of British pound banknotes resting on a wooden desk next to a glass of water
Illustration: Tradingbird

The pound has retreated to 1.3356 as an oil supply shock reignites inflation fears, overshadowing strong UK retail sales. Market pricing now reflects a high probability of further rate hikes from both the Fed and the Bank of England, but the resulting widening rate differential remains a headwind for Sterling against the US dollar.

  • New details from GN auto markets/forex: pound sterling reveal that US industrial production missed expectations, reinforcing the case for a Fed hike with October odds at 55%, while the Bank of England now faces a 65% chance of a November rate increase. The widening interest rate differential continues to favor the dollar, keeping GBP/USD pinned beneath key moving averages near 1.3481.

    Source: mitrade.com

  • The British pound lost 0.03% of its value, trading at 1.3356 against the US dollar. This pullback followed a brief rally on strong UK retail sales. Higher oil prices have reignited inflation concerns, pressuring the currency despite positive economic data.

    Source: fxstreet.com
Based on reporting by fxstreet.com and mitrade.com, compiled by the Tradingbird desk.

Read next

More in Markets
A stack of metallic coins resting on a wooden desk next to a glass of water
Markets · Forex

Dollar Index Reverses After Weak US Data

The dollar index closed down 0.03% Friday, erasing earlier gains as unexpected declines in US manufacturing and leading indicators undermined the case for further rate hikes.

2026-09-20Illustration: Tradingbird
A stack of paper banknotes and a foreign currency bill resting on a wooden desk
Markets · Forex

Iraqi Dinar Slides to 1,590 Against Dollar as Reserves Fall

The Iraqi dinar weakened to 1,590 per dollar in Sulaimani. Central Bank reserves dropped to $80.6 billion in July.

2026-09-20Illustration: Tradingbird
A stack of South Korean won banknotes resting on a wooden desk next to a single U.S. dollar bill
Markets · Forex

Won-Dollar Rate Jumps 37 Won in One Week

The South Korean won weakened sharply against the US dollar, closing at 1,383.30 won per dollar. This represents a 37.4 won increase over five trading days.

2026-09-20Illustration: Tradingbird

More from the Markets desk

All desk stories