The British Pound (GBP) traded 0.2% higher at around 1.3233 against the US Dollar (USD) during the European session on Tuesday, buoyed by comments from Bank of England (BoE) policymaker Greene, who advocated for a proactive approach to tackling UK inflation. Greene emphasized that waiting for second-round effects of energy supply shocks would be 'too late,' and described UK monetary policy as 'not that restrictive,' suggesting potential for further tightening if inflation persists. This hawkish tone, reflected in Greene’s 8.2/10 FXS Speechtracker score (above the 7.7/10 baseline), reinforced expectations that the BoE could lean toward additional rate hikes rather than early easing, supporting the GBP relative to the Euro and Dollar [1].
So far this year, the BoE has kept interest rates steady at 3.75%. Investors are awaiting the UK’s monthly Gross Domestic Product (GDP) data for August, scheduled for Thursday, which is expected to show a 0.1% contraction following a 0.4% expansion in July [1]. Meanwhile, a correction in the US Dollar has also supported the GBP, with the US Dollar Index (DXY) retreating to near 102.30 from a yearly high of 102.60 [1].
According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, GBP/USD has shown resilience but is drifting lower, with intraday price action indicating a tentative downside bias within the 1.3190–1.3235 range. For the next 1–3 weeks, they expect GBP to remain range-bound between 1.3170 and 1.3280, noting that earlier mild downward pressure has eased. Their 24-hour view anticipates GBP trading with a downside bias, but any decline is likely to stay within the lower end of the range [2].
While Greene’s comments have provided a hawkish underpinning for the Pound, UOB analysts do not foresee a breakout from the current trading band in the near term, expecting the currency pair to remain confined within established levels [1][2].
CONCLUSION
The British Pound has gained on the back of hawkish comments from BoE’s Greene, who signaled openness to further tightening if inflation persists. However, analysts from UOB expect GBP/USD to remain range-bound in the short to medium term, with no immediate breakout anticipated. Market participants are now focused on upcoming UK GDP data for further direction.