The British pound remained flat against the dollar as the US currency’s recent rally paused ahead of the Bank of England’s policy decision. The GBP/USD exchange rate stood at 1.3381 as of 08:12 GMT, reflecting little movement from earlier gains. Meanwhile, the euro strengthened slightly against the dollar, rising 0.03% to 1.1468, while the dollar index (DXY) climbed 0.6% to its highest level in two months, signaling broader US dollar strength. Analysts noted that while the dollar’s momentum has moderated, near-term upside risks persist, particularly given the Federal Reserve’s recent 25-basis-point rate hike and its outlook for further tightening.
Pound holds steady as dollar rally stalls ahead of BoE decision
USD strength stalls amid mixed expectations for BoE’s monetary policy stance and Fed’s rate hike
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Sophie Laurent · FX & Rates Desk · 17 Sept 2026 · 10:01 · 1 min read
This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk
Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.
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