GBP/USD Falls Despite the Strongest UK Growth in Two and a Half Years

The GBP/USD outlook hinges on rates, as the pound falls despite the strongest UK growth in 2.5 years while Fed hike bets lift the U.S. dollar. Fiona Cincotta, StoneX Senior Market Analyst, explains why sterling is losing ground to the U.S. dollar and how the GBP/USD chart has shifted. UK GDP growth reached 0.7% in the third quarter, its strongest pace in two and a half years, helped by AI-driven productivity gains and a solid services sector. Markets price a 75% chance of another Bank of England rate hike in December. A sharp slide in Brent crude adds uncertainty over how far the Bank of England hiking cycle can run, even as the bank expects inflation to rise to almost 5%. The U.S. dollar sits at a 19-month high against its major peers after a hotter-than-expected U.S. inflation report and hawkish Federal Reserve commentary, including Governor Christopher Waller raising the idea of a 50 basis point hike. 00:00 - GBP/USD Sinks Despite UK GDP 00:21 - AI and Services Lift UK Growth 00:48 - Markets Price More BoE Hikes 01:32 - Brent Slide Clouds BoE Path 02:09 - Dollar Hits a 19-Month High 03:12 - GBP/USD Breaks Key Averages Discover Actionable Insights with the latest Market Outlook Reports https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share Like and subscribe for more financial market insights. #GBPUSD #StoneX #FionaCincotta #Forex --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social