No major economic events are expected today.

The Pound maintains interest rate support as market participants anticipate a Bank of England rate hike in November. Elevated energy costs compound inflationary risks, highlighting the importance of upcoming commentary from the regulator. However, this expected tightening is already priced into the market and does not, on its own, guarantee further upside for the British currency.

For the UK, the energy shock presents a dual challenge: rising household expenses threaten to weigh on consumer spending, while high borrowing costs act as a drag on investment. The upcoming budget also remains a key source of uncertainty. While the Pound’s position relative to the Euro appears more resilient due to France’s fiscal challenges, this does not imply an advantage against the US Dollar.

The Greenback continues to draw support from strong relative yields and safe-haven demand stemming from geopolitical tensions. Today’s pullback in oil prices may soften the inflationary case for the Dollar, whereas hawkish messaging from the Bank of England could bolster the Pound. In the absence of a fresh catalyst strong enough to counter broader Dollar demand, the baseline scenario for GBP/USD retains a moderate bearish bias.

Recommendations: SELL 1.3215, SL 1.3250, TP 1.3130.