CFD Trading Rate Great Britain Pound vs US Dollar (GBPUSD)

• GBP/USD breaks its three-day losing streak due to improved risk sentiment.
• July's US PCE Index data has diminished expectations of an aggressive Fed rate cut in September.
• The Pound Sterling may advance further as the BoE is expected to reduce rates gradually in 2024.

GBP/USD halts its three-day losing streak, trading around 1.3140 during the Asian hours on Monday. The US Dollar (USD) faces challenges due to improved market optimism amid rising dovish expectations surrounding the US Federal Reserve (Fed).

However, July's US Personal Consumption Expenditures (PCE) Index data led traders to scale back expectations of an aggressive Federal Reserve rate cut in September. PCE Price Index increased by 2.5% year-over-year in July, matching the previous reading of 2.5% but falling short of the estimated 2.6%. Meanwhile, the core PCE, rose by 2.6% year-over-year in July, consistent with the prior figure of 2.6% but slightly below the consensus forecast of 2.7%.

According to the CME FedWatch Tool, markets are 70.0% anticipating at least a 25 basis point (bps) rate cut by the Fed at its September meeting. Traders are now likely to focus on the upcoming US employment figures, including the Nonfarm Payrolls (NFP) for August, to gain further insights into the potential size and pace of Fed rate cuts.

On the GBP front, the Bank of England (BoE) is expected to reduce interest rates gradually in the remainder of the year, which might help the Pound Sterling (GBP) hold its position. At the Jackson Hole Symposium, BoE Governor Andrew Bailey stated that the second-round effects of inflationary pressures would be less significant than anticipated. However, Bailey also advised against hastening additional interest rate cuts, according to Reuters.

• GBP/USD holds positive ground near 1.3135 in Monday’s early Asian session.
• Fed rate cut expectations continue to undermine the US Dollar. 
• The BoE is expected to cut one more 25 bps for the remaining year, according to a Reuters poll.

The GBP/USD pair gains ground around 1.3135, snapping the three-day losing streak during the early Asian session on Monday. In the absence of top-tier economic data releases from the UK this week, the USD price dynamic will be the main driver for the GBP/USD. The US Nonfarm Payrolls (NFP) for August will take center stage on Friday. 

The US Federal Reserve (Fed) easing expectations remain weigh on the Greenback. Fed Chair Jerome Powell last week signalled that a rate cut was imminent, citing labor market concerns. According to the CME FedWatch tool, traders are now pricing in a nearly 70% of the 25 basis points (bps) rate cut by the Fed in September, while the odds of a 50 bps reduction stand at 30%. 

The key US employment data on Friday will help determine whether the US Dollar (USD) recovery can continue. The US economy is expected to see 163K job additions in August, while the Unemployment Rate is expected to tick lower to 4.2%. Average Hourly Earnings are projected to rise to 0.3% MoM in July. In case of weaker-than-expected outcomes, this could raise concern about an economic slowdown in the US economy and drag the Greenback lower. 

On the other hand, investors are gaining confidence that the policy-easing cycle by the Bank of England (BoE) will be gradual in the remainder of the year, which might lift the Pound Sterling (GBP). Economists anticipate one more 25 basis points (bps) rate cut from the BoE this year, according to a Reuters poll. 

• GBP/USD shows upward bias on daily chart, yet short-term RSI presents mixed signals.
• Hourly chart reveals bearish trend with the pair below 50, 100, and 200-HMAs; sellers aim for 1.3108 and potentially 1.3100.
• Additional supports at August 22 low of 1.3076 and August 20 high of 1.3052.
• Buyers reclaiming 200-HMA at 1.3148 could push recovery to 1.3182 (50-HMA) and 1.3200.

The GBP/USD extends its losing streak to three days yet has bounced off daily/weekly lows of 1.3129 and exchanges hands at 1.3149, down a modest 0.14%. Data from the United States (US) spurred a leg-down in the currency pair as the Fed’s preferred gauge for inflation came as expected, hinting that the US Federal Reserve could cut rates at the upcoming September meeting.

GBP/USD Price Forecast: Technical outlook

Daily, the GBP/USD remains upward biased despite retreating toward the 1.3120 area. In the short term, sellers are in charge, as revealed by the Relative Strength Index (RSI), which is bullish but aiming lower and showing mixed readings.

Zooming into the hourly chart, the GBP/USD is bearishly biased, as the exchange rate remains below the 50, 100, and 200-hour moving averages (HMAs), with sellers eyeing last Friday's low of 1.3108. Once cleared could pave the way for testing the 1.3100 figure. A further downside is seen at the August 22 swing low of 1.3076, ahead of the August 20 high at 1.3052.

If GBP/USD buyers reclaim the 200-HMA at 1.3148, this could sponsor a recovery toward the 50-HMA at 1.3182 ahead of 1.3200.

GBP/USD Price Action – Hourly Chart

House price data from Nationwide fell 0.2% in August but UK lending data suggest some renewed vigour in the UK housing market as house hunters anticipate easier BoE policy, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP holds bulk of gains

“Mortgage approvals rose 62k in July, the strongest in close to two years. Net lending secured on dwellings rose GBP2.8bn, meanwhile. Sterling is up marginally on the day but spot is consolidating.”

“GBP price action over the week suggests the rally in the pound has stalled but the technical jury is still out on whether a deeper reversal or correction lower will develop. Short-term price action reflects some drift in the pound from this week’s peak and some signs of stronger fading interest on minor GBP gains.”

“GBP support is 1.3125. Resistance is 1.3200/05.”

The Pound Sterling (GBP) is expected to trade in a 1.3145/1.3215 range. In the longer run, rapid slowdown in momentum suggests the likelihood of GBP rising to 1.3320 has diminished, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

Rapid slowdown in momentum

24-HOUR VIEW: “While we noted an increase in downward momentum yesterday, we indicated that ‘it does not appear to be enough for GBP to break the strong support at 1.3145.’ However, GBP weakened more than expected, almost breaching 1.3145 as it reached a low of 1.3146. GBP closed at 1.3170 (-0.16%). Despite the decline, downward momentum has not increased much. Instead of continuing to weaken, GBP is expected to trade in a 1.3145/1.3215 range today.”

1-3 WEEKS VIEW: “Our update from yesterday (29 Aug, spot at 1.3195) is still valid. As highlighted, there has been a rapid slowdown in upward momentum. While our ‘strong support’ level at 1.3145 has not been breached yet, the slowdown in momentum suggests the likelihood of GBP rising to 1.3320 has diminished. GBP must break and remain above 1.3250 in the next 1 to 2 days, or a breach of the ‘strong support’ level would not be surprising.”

• GBP/USD loses ground as traders adopt caution ahead of US Personal Consumption Expenditure Price Index data.
• US Gross Domestic Product grew at 3.0% in Q2, exceeding both the expected and previous growth rate of 2.8%.
• The Pound Sterling may gain ground as traders expect the BoE to maintain higher rates for a longer period.

GBP/USD loses ground for the third successive session, trading around 1.3160 during the Asian hours on Friday. This downside could be attributed to the improved US Dollar (USD) following stronger-than-expected economic data released on Thursday. Investors await July’s US Personal Consumption Expenditure (PCE) Price Index scheduled to be released later in the North American Session.

The US Gross Domestic Product Annualized grew at 3.0% in the second quarter, exceeding both the expected and previous growth rate of 2.8%. Additionally, Initial Jobless Claims showed that the number of people filing for unemployment benefits fell to 231,000 for the week ending August 23, down from the previous 233,000 and slightly below the expected 232,000.

However, dovish remarks from the Federal Reserve could constrain further gains for the Greenback. Federal Reserve Atlanta President Raphael Bostic, a prominent hawk on the FOMC, indicated on Thursday that it might be "time to move" on rate cuts due to further cooling inflation and a higher-than-expected unemployment rate. However, Bostic wants to wait for confirmation from the upcoming monthly jobs report and two inflation reports before the Fed's September meeting.

The downside for the Pound Sterling (GBP) may be limited, as traders anticipate that the Bank of England (BoE) will maintain higher interest rates for a longer period compared to the US Federal Reserve (Fed). The BoE reduced rates by 25 basis points to 5% on August 1, and money markets are pricing in an additional 40 basis points of cuts by the end of the year.

In his speech at the Jackson Hole Symposium last week, BoE Governor Andrew Bailey indicated that the second-round effects of inflationary pressures would be less significant than anticipated. However, Bailey also advised against hastening additional interest rate cuts, according to Reuters.

• GBP/USD momentum favors sellers, possibly targeting the July 17 high of 1.3043.
• Further declines could test 1.3043; next major support at March 8 high of 1.2893.
• For an upside reversal, buyers need to breach 1.3200, aiming for two-year high at 1.3266, then 1.3293 and 1.3437.

The GBP/USD extended its losses to two straight days and cleared the 1.3200 figure on the downside, as bears woke up after August’s 400-pip rally, crushed their expectations for lower prices. Despite the lack of UK economic data, the docket remains busy across the pond, with goodish data bolstering the Greenback. Therefore, the pair trades at 1.3151, down 0.30%.

GBP/USD Price Forecast: Technical outlook

The GBP/USD daily chart hints that in the short-term, the pair could aim and test the latest cycle high witnessed on July 17, at 1.3043. Momentum has shifted in sellers' favor as the Relative Strength Index (RSI) peaked at overbought territory. However, it has finally retraced below the 70 level, spurring the major’s two-day pullback to current exchange rates.

Although sellers are in charge, they must clear the 1.3100 figure and the psychological 1.3050 support before testing lower waters. If those two levels are taken out, the GBP/USD could aim for 1.3043, and on further weakness, the March 8 daily high emerges as the next demand zone at 1.2893.

On the other hand, if buyers want to counterattack, they must breach the 1.3200 figure. This will immediately expose the two-year high at 1.3266. A breach of the latter, and buyers could challenge the March 23, 2022, daily high at 1.3293 ahead of the March 1, 2022, swing high at 1.3437.

GBP/USD Price Action – Daily Chart

The Pound Sterling (GBP) is little changed on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Break below 1.3160 to signal a further drop

“Overnight price trends suggest the slide in the EUR dragged the GBP down in sympathy to some degree although EUR/GBP retains a better offered tone as the cross nears 0.84 and a potential retest of the July low at 0.8380 (lowest since August 2022).”

“Short-term trends in the GBP have turned flat after yesterday’s drop in Cable. Spot trends are holding a neutral pattern at the moment but loss of support at 1.3160 will signal potential for losses to extend a little more (towards 1.3050/60) in the coming days.”

The Pound Sterling (GBP) could weaken but does not appear to have enough momentum to break the strong support at 1.3145. In the longer run, rapid slowdown in momentum suggests the likelihood of GBP rising to 1.3320 has diminished, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.

GBP may test 1.3145 near term

24-HOUR VIEW: “We did not anticipate GBP to tumble yesterday, as it fell by 0.53% (1.3191). There has been an increase in momentum, but it does not appear to be enough for GBP to break the strong support at 1.3145 (there is another support at 1.3165). Resistance is at 1.3220; a breach of 1.3245 would indicate that GBP is not weakening further.”

1-3 WEEKS VIEW: “After GBP soared last Friday, we indicated on Monday (26 Aug, spot at 1.3215) that ‘the sharp and rapid rise is coupled with strong momentum.’ We expected GBP to continue to rise and indicated that ‘the next level to monitor is 1.3320.’ The sharp drop of 0.53% (1.3191) yesterday was surprising. While our ‘strong support’ level at 1.3145 has not been breached yet, the rapid slowdown in momentum suggests the likelihood of GBP rising to 1.3320 has diminished. GBP must break and remain above 1.3250 in the next 1 to 2 days, or a breach of the ‘strong support’ level would not be surprising.”

• GBP/USD is on a gradual recovery mode, as the US Dollar resumes the downside.
• The focus now shifts to the US Q2 GDP data for fresh trading impetus in GBP/USD.
• The Pound Sterling looks bullish against the US Dollar on the four-hour chart.

GBP/USD is making a headway back toward the 29-month high set on Tuesday at 1.3266. The pair is helped by a renewed selling seen in the US Dollar even as risk-off flows dominate, in the aftermath of the disappointing guidance shared by the American AI titan, Nvidia.  

The divergent monetary policy outlooks between the US Federal Reserve (Fed) and the Bank of England (BoE) also remain in favor of the GBP/USD uptrend. 

However, the further upside in the pair remains at the mercy of the upcoming second estimate of the US Q2 Gross Domestic Product (GDP) and the acceptance above the 21-Simple Moving Average (SMA) on the four-hour chart.

The 21-day SMA aligns at 1.3210, where it now wavers. Recapturing the latter is necessary on a four-hourly candlestick closing basis to take on the 1.3250 psychological level.

Fresh buyers will likely emerge above that level, calling for the test of the two-year high of 1.3266 en route to the 1.3300 round figure.

Conversely, a failure to gain a strong foothold above the 21-SMA, sellers will jump back into the game, dragging GBP/USD back toward the 50-SMA at 1.3120.

The Relative Strength Index (RSI), however, points north near 60, suggesting that the recovery mode could extend.

GBP/USD: Daily chart

• GBP/USD slid back below 1.3200 on Wednesday. 
• Recent bullish market flows are taking a breather.
• Rate-cut-hungry markets look ahead to Friday’s US PCE inflation.

GBP/USD fell back below 1.3200 on Wednesday after near-term bullish momentum eased. Markets have piled into a one-sided risk appetite stance as investors hunker down for the long wait to an anticipated kickoff of a rate-cutting cycle from the Federal Reserve (Fed) in September.

UK economic data remains limited this week, leaving the Pound Sterling exposed to broad-market sentiment flows. US Gross Domestic Product (GDP) figures are slated to release on Thursday, but little movement is expected as markets have broadly priced in Q2 annualized GDP growth to hold steady near 2.8%.

US Personal Consumption Expenditure Price Index (PCE) inflation due on Friday remains the week’s key print, and investors are shuffling their feet while they wait for signs that inflation will continue to ease, or at least not rise, fast enough that the Federal Reserve (Fed) will be kept on rails to deliver a hotly-anticipated rate cut on September 18.

GBP/USD price forecast

GBP/USD gave up ground on Wednesday, retreating from fresh 29-month highs hit this week. Downside momentum remains limited for the time being, but bids have slipped back below the 1.3200 handle and bearish momentum has plenty of room to run with price action trading well north of the 200-day Exponential Moving Average (EMA) at 1.2695.

GBP/USD daily chart

• GBP/USD struggles to keep its uptrend above year-to-date (YTD) high of 1.3266.
• RSI shifting overbought opened the door for GBP/USD’s retracement.
• The uptrend will resume once the pair reclaims 1.3266.
• Downside risks emerge if GBP/USD tumbles below 1.3200.

The Pound Sterling retreats from the multi-year highs it reached on Tuesday and registers losses of over 0.40% against the Greenback as traders brace for the release of US inflation data on Friday. The GBP/USD enjoyed a ride and hit a two-year peak at 1.3266 following Fed Chair Jerome Powell’s speech, yet at the time of writing, the pair trades at 1.3220.

GBP/USD Price Forecast: Technical outlook

According to the GBP/USD daily chart, the uptrend will extend as long as the pair remains above the top trendline of an ascending channel that was broken on August 23. However, due to the 400-pip rally in August, the pair is set to consolidate as buying momentum begins to fade, as depicted by the Relative Strength Index (RSI).

The RSI turned overbought, meaning the pair could retreat before aiming for higher prices.

If GBP/USD clears the YTD high of 1.3266, that could pave the way for challenging the March 23, 2022 peak at 1.3298. Further gains are seen once that level is cleared, with the next key resistance being the 1.3400 figure before challenging the March 1, 2022, high at 1.3437.

Conversely, if GBP/USD tumbles below 1.3200, this could exacerbate a pullback toward the latest cycle high at 1.3044, hit on July 17. A breach of the latter will expose the 50-day moving average (DMA) at 1.2857.

GBP/USD Price Action – Daily Chart

The Pound Sterling (GBP) has drifted lower in line with the broader trend in the USD so far today, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP consolidates

“PM Starmer is in Germany to try and rebuild UK/EU ties—a potential GBP-positive. BoE MPC member Mann, who dissented in favour of a hold at the last MPC policy decision, speaks at 8.15ET. A generally firm run of UK data reports in the recent past will not have allayed her concerns about an ‘upward ratchet’ to wage trends.”

“GBP is consolidating but has put minor bull trend support at 1.3235 behind it on the session, suggesting that a little more drift may develop in the short run. A low close on the session could form a bearish “harami” candle. GBP support is 1.3180.”

The Pound Sterling (GBP) could strengthen further, but it does not appear to possess enough momentum to reach the major resistance at 1.3320, UOB Group FX strategists Quek Ser Leang and note.

Bulls are set to breach 1.3320

24-HOUR VIEW: “We did not anticipate GBP to soar to a fresh 2-1/2 year high of 1.3269 yesterday (we were expecting range trading). The rapid buildup momentum suggests further GBP strength today. However, GBP does not appear to possess enough momentum to reach the major resistance at 1.3320 (there is another resistance at 1.3295). To keep the momentum going, GBP must not break below 1.3215 with minor support at 1.3235.”

1-3 WEEKS VIEW: “The level to monitor is 1.3320. After GBP soared last Friday, we indicated on Monday (26 Aug, spot at 1.3215) that ‘the sharp and rapid rise is coupled with strong momentum.’ We expected GBP to continue to rise and indicated that ‘the next level to monitor is 1.3320.’ There is no change in our view. Overall, only a breach of 1.3145 (‘strong support’ level previously at 1.3105) would mean that the GBP strength has run its course.”

• GBP/USD lurched into a fresh 29-month peak as the US Dollar recedes.
• Markets continue to tilt into a risk-on stance as Fed rate cut hopes continue.
• UK economic data releases remain thin this week, US PCE inflation looms on Friday.

GBP/USD tested into a fresh multi-year high on Tuesday, easing into a 29-month peak of 1.3266 as the Pound Sterling continues to catch a ride on a broad-market Greenback sell wave. Investors have piled into hopes for a September rate cut from the Federal Reserve (Fed), and US Personal Consumption Expenditure Price Index (PCE) inflation figures not due until Friday leave markets with little meaningful data to chew on until then.

Fed Chair Jerome Powell all but confirmed that the central bank will pivot into a rate-cutting cycle on September 18 during an appearance at the Jackson Hole Economic Symposium last Friday, sending market appetite into the ceiling ocne again.. 

Coming up on Wednesday: consolidation session on the cards

Little of note is populating the economic calendar on the UK side, and Wednesday is shaping up to be a quiet session on both sides of the Atlantic. Fedspeak traders will have an eye out for a speech from Fed Board of Governors member Christopher Waller early in the US market session, while central bank watchers will be looking out for a speech from Bank of England (BoE) policymaker Catherine Mann, due after London markets close.

What happened on Tuesday

Mixed prints in US housing price data from June gave investors little to go on. The Federal Housing Finance Agency’s MoM Housing Price Index contracted -0.1% compared to May’s print of 0.0%. Markets expected a print of 0.2%. The S&P/Case-Shiller Home Price Indices, meanwhile, rose 6.5% YoY, less than the previous period’s revised 6.9%, but still more than the expected 6.0%.

Coming up: US GDP, PCE inflation data prints

US Q2 Gross Domestic Product (GDP) figures are slated to print on Thursday, and are expected to hold steady at 2.8% on an annualized basis. However, the key data print this week will be Friday’s US Personal Consumption Expenditure (PCE) Price Index inflation reading for July, which is expected to tick higher YoY to 2.7% from 2.6% and hold flat at 0.2% MoM. Market participants absolutely giddy over hopes for rate cuts will be looking for inflation data to come in below expectations, while an above-forecast print could send fresh jitters through investor risk appetite.

Forex Today: Lack of enthusiasm points to some consolidation

GBP/USD price forecast

Cable’s early-week pullback is already over, with bids tipping once again into a fresh 29-month high. GBP/USD is now on pace to resume a near-term bullish trend that has dragged the pair up 4.75% bottom-to-top from early August’s swing low into 1.2665.

GBP/USD has closed in the green for all but two of the last 14 consecutive trading days, and technical barriers on the high side have drawn thin. Bidders should be cautious of an overbought snap back into the low side, but with price action trading well north of the 50-day Exponential Moving Average (EMA) at 1.2876, it would take a significant drop in value before signs of a bearish trend change even begin to form on the charts.

GBP/USD daily chart

• GBP/USD uptrend remains intact as long as it stays above 1.3043.
• If buyers reclaim 1.3298, that will expose March 2022 peak at 1.3437.
• A dip below 1.3200 will expose further support levels, like August 22, 1.3130 and the 1.3100 figure.

The Pound Sterling extended its gains and refreshed multi-year highs at around 1.3246 on Tuesday as the Greenback failed to recover following a surprisingly dovish tilt by Fed Chair Jerome Powell at his Jackson Hole speech. Investors increased their bets that the US central bank will lower rates at the September meeting, a tailwind for the GBP/USD. The pair exchanged hands at 1.3239 and is up by 0.40%.

GBP/USD Price Forecast: Technical outlook

The uptrend in the GBP/USD continues even though the Relative Strength Index (RSI) is overbought, which could cap the pair’s advance higher. Nevertheless, reclaiming the top trendline of an ascending channel could put into play the test of the March 22, 2022, peak at 1.3298 before challenging higher prices.

In that outcome, the GBP/USD's next resistance would be 1.3300. Once surpassed, the March 1, 2022, daily high would emerge at 1.3437.

Conversely, a dip below 1.3200 can send the GBP/USD towards the August 22 high at 1.3130 ahead of 1.3100. On further weakness, the next support would be the July 17 peak turned support at 1.3044.

GBP/USD Price Action – Daily Chart

The Pound Sterling pushed higher to near 1.3250 in overnight trade before easing back, Scotiabank’s Chief FX Strategist Shaun Osborne notes

Cable is at risk of testing trend support 1.3200/05

“UK Gilts are underperforming moderately, giving the pound some modest yield support but the steady ramp up in Cable from the start of Asian trade suggests a buy program was behind the gains rather than anything fundamental. The BRC’s Shop Price Index fell in Y/Y terms (-0.3%) for the first time in close to three years, suggesting easing inflationary UK pressures.”

“GBP’s bull trend remains resilient after overnight gains extended to the mid-1.32s. The drift off the high is starting to look a minor negative for the pound, however, and suggests Cable is at risk of slipping back a little more intraday now to test trend support 1.3200/05. Support below here sits at 1.3125.

Sharp and rapid rise is coupled with strong momentum; Pound Sterling (GBP) is expected to continue to rise, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

A breach of 1.3105 to stop GBP march upwards

24-HOUR VIEW: “We highlighted yesterday that ‘as long as 1.3160 is not breached, there is room for GBP to test 1.3250, after which the advance may pause.’ While GBP did not breach 1.3160, it did not test 1.3250 either, trading in a range of 1.3181/1.3222. The strong advance from late last week is likely taking a pause. Today, we expect GBP to trade in a range, probably between 1.3160 and 1.3220.”

1-3 WEEKS VIEW: “The level to monitor is 1.3320. GBP soared last Friday. Yesterday (Monday), we indicated that ‘the sharp and rapid rise is coupled with strong momentum.’ And GBP ‘is expected to continue to rise.’ We also indicated that ‘the next level to monitor is 1.3320.’ There is no change in our view. Overall, only a breach of 1.3105 (no change in ‘strong support’ level from yesterday) would mean that the GBP strength has run its course.”

• GBP/USD inches higher due to improved market optimism amid easing Middle-East tensions.
• San Francisco Fed President Daly supported the idea of starting to cut interest rates, with a reduction of 25 basis points.
• UK PM Starmer may emphasize that "change won't happen overnight," but he is committed to tackling bigger issues.

GBP/USD inches higher following the easing of the concerns about an imminent broader conflict in the Middle East have diminished following an exchange of fire between Israel and Lebanon's Hezbollah that did not escalate further. US Air Force General C.Q. Brown, chairman of the Joint Chiefs of Staff, told Reuters early Tuesday after concluding a three-day trip to the region. The risk-sensitive GBP/USD pair trades around 1.3190 during Tuesday’s Asian hours.

The US Federal Reserve (Fed) Chairman Jerome Powell stated at the Jackson Hole Symposium on Friday, "The time has come for policy to adjust." However, Powell did not specify when rate cuts would begin or their potential size. According to the CME FedWatch Tool, markets are fully anticipating at least a 25 basis point (bps) rate cut by the Federal Reserve at its September meeting.

Additionally, San Francisco Federal Reserve President Mary Daly stated on Monday in an interview with Bloomberg TV that "the time is upon us" to begin cutting interest rates, likely starting with a quarter-percentage point reduction. Daly suggested that if inflation continues to slow gradually and the labor market maintains a "steady, sustainable" pace of job growth, it would be reasonable to "adjust policy at the regular, normal cadence."

In the United Kingdom (UK), the BRC Shop Price Index fell by 0.3% year-on-year in August compared with the previous increase of 0.2% in July. British shop prices fell in annual terms this month for the first time since October 2021, pushed down by summer sales of clothes and household goods.

UK Prime Minister Keir Starmer stated last week that addressing Britain's numerous challenges will take time, warning that "things will get worse before they get better" in a speech he described as an opportunity to be candid with the public. As Britain's parliament returns to work after the summer break on Tuesday, Starmer may emphasize that "change won't happen overnight," but his government is committed to tackling a wide range of issues, from overcrowded prisons to long waiting lists for health services.